Use this important trading tool to improve

If it's not good enough to mention on its own merits, then why would I mention it at all? But for some of you who want to do the short term, you see these tools didn't exist when I came out.

You had to do it all by hand.

Which means you didn't do it, right? Because it wasn't fun to have to do it by hand.

You kept your charts by hand.

You didn't have a choice.

Um...

A lot of people were using point and figure, which they don't work, but they were easy enough to do, so it was kind of a ghetto fabulous way of keeping charts.

Michael and Ed didn't do it that way, but in the office where I worked, there were a lot of people who did that or they subscribed to Dorsey Wright and Associates or this and that, and it was easy enough to follow.

Since then, technical analysis has evolved quite a bit.

to have much better rules and expected values.

But the replay would allow you to say, like, okay, here's something that I see.

I wonder if I bought a piece of risk here.

And when I say piece of risk, it's within the overall pizza pie of what you're risking, say, from a portfolio heat standpoint on your account across any or all of your trades or positions in a particular day, right? And this is what you're going to carve out for this one particular trade.

Now, some really, really good day traders will talk about having an A-plus setup, an A setup, a B setup, and this and that.

I think when you're starting out, that's a lot to ask for when you don't know your ass from a hole in the ground and you're trying to find four different trades.

four different setups, just pick one and get good at it and worry about the second one at a time to be determined, right? TBA, you know, TBD, when you're looking for that, when's the time of the next ball game? It's TBD.

So you can put on those trades and then replay them and kind of see, and it's kind of more of an exotic type of a back test where you can see like, okay, here's how this thing moves.

Here's how it works.

Here's what the ATR is.

Here's how it's behaving within that overall ATR measurement.

And then what are some of the nuances that you can see? What can you pick up? Are there pullbacks? Are there retracements to nine-period EMAs? Are there pullbacks to intraday lows? Are there bounces there? because that does a couple of things for you.

Most importantly, it helps you understand your position sizing, which is the heart of risk management.

You have to start with the position size, and then you worry about the prices.

You see what I'm saying? You always want to understand position size, because if you're too big, you can get blasted real quick.

If you're too small, because the water's cold, you are never going to make any money.