Content Versus Process

Midas ~ Gold finger, breakout from 1.17 with volume, supp 1.10






China Milk ~ retracement complete? supp 1.28, target res 1.40

Genting ~ 'Air Genting', supp .44






Luzhou ~ flag complete, supp .835 , res .875






Wilmar ~ white candle, supp 1.80




Suppose that you are a space traveler. You have just landed from a far away planet, and you find yourself in a room where a chess set has been arranged on a table. You want to understand exactly what is going on in this strange Earth. You examine the chess pieces individually and notice that there are several different shapes and sizes. You want to really understand, so you do an "electron analysis" of each individual piece. You know the exact location, size, and makeup of each piece. You thoroughly understand the makeup and thecontent of the entire set.But unless and until you understand the process of playing chess, you will never understand the game and its significance will be lost on you. In over four decades of observing traders and trading, I have come to the conclusion that most traders approach the market with the same orientation as our fictitious space traveler.

Both are primarily concerned with content as opposed to process. Our space traveler will never understand the game of chess until he observes two people playing and competing against each other. This is not necessarily bad; it just doesn't have a great payoff. We traders do it with each other when we ask:

* How much did you make this month?

* Did you go long the gold?

* What kind of car do you drive?

* Will you show me your P&L statements?

* Can you give me someone who is using your approach profitably?

* Did you know that this market is heavily oversold?

All the above examples center on content rather than process. Both my scientific background and my experience in trading have convinced me that the primary difference between winners and losers is whether they focus on content or process.

(The above are material extracted from Bill Williams' New Trading Dimensions - How to profit from Chaos in Stocks.)