Dick Diamond's Trading Course: Final Thoughts from an Actual Student

Home > Education
Dick Diamond's Trading Course: Final Thoughts from an Actual Student
An actual report by an actual student -- part three

By Vadim Pokhlebkin
Tue, 12 Jun 2012 17:45:00 ET

Get investable insights sent to your inbox at least once a week – for free. Challenge the way you think about investing with The EWI Independent.

Privacy

In my previous reports, one and two, I told you about some of Dick Diamond’s trading rules. Today I’ll describe for you my final impressions of the man who has managed to make a living trading futures for 45 years -- a truly remarkable achievement.

What’s also remarkable is that for the most part, Dick has done it purely on technical analysis -- something that most traders will find hard to believe. Oh sure, he keeps track of the economic data releases and such, but he never trades on them. In fact, he doesn’t trade at all when economic numbers or the Federal Reserve statements are released: too much unpredictable volatility.

“Don’t consider fundamentals,” Dick told us on the very first day. “And when the Fed speaks -- go play golf.”

I mentioned before that despite his humble demeanor, Dick is fiercely confident. On days 3 and 4 of the course he trades S&P futures live in class, and that’s when his intense confidence becomes most obvious.

Have you seen the movie Heat, with De Niro and Pacino? One of the best heist flicks ever made. Remember the main bank robbery scene? One of the robbers (played by Val Kilmer), walks out of the bank with a duffel bag full of cash on one shoulder and a barely concealed M16 rifle on the other. When he gets to the getaway car and opens the door, he glances across the street and sees two cops hiding behind a truck...or two guys who only look like cops? The moment is so fast, it’s hard to even tell. Immediately, Kilmer’s character drops the bag, raises his gun and opens fire. No hesitation, no time wasted; a split-second decision.

That scene played in my head over and over as I was listening to Dick describe his S&P futures trade executions.

“When you see an 80/20 trade, shoot immediately. Generally speaking, the better the opportunity, the less time it will last. And when you see mixed signals in the market -- don’t hesitate and get out.”

(“When there is a doubt, there is no doubt,” tells De Niro’s character to one of his guys in Heat. “When you feel the heat around the corner, walk away.”)

“And don’t even think about opening a trade if the market gives you mixed signals. If you’re itching to pull the trigger, get up from your desk. Close the trading screen. Leave the house. If the market is not playing by your rules, do not play: you will lose.

“And what if you do lose? First of all, blame only yourself. If you blame others, you’ll never succeed. Secondly, taking losses is part of running any business. Wal-Mart takes returns, right? Just don’t go trying to make up for your losses. Three losing trades in one day? Go take a nap. Remember: Key word is defense.”

Yes, key word is defense. If there is one thing I will remember from Dick’s course, it’s that.

Of course, what you’ve read in my three reports is just a small portion of the complete trading methodology Dick teaches in his course. I couldn’t describe it for you even if I had ten days; you just have to be there.

Besides, while you and I can learn a lot from a market veteran like him, we can’t copy his style completely -- his and ours brains work differently. Think for yourself, analyze, adjust, adapt. Traders are made, not born, Dick says. He should know.

Learn how to zero in on "80/20 trades," improve your trading patience and discipline and develop your path to a successful trading career...

...at Dick Diamond's 4-day Market Mentor Trading Course on July 22-25 in Orlando, Florida.

Dick teaches you the tips and techniques he has developed over 45 years of successful trading to help you overcome the obstacles that hinder your success.

Diamond's protégé and former student, Roberto Hernandez, "shares the stage" with Dick and shows you how he pinpoints "80/20" trades using the Elliott Wave Principle. (Hernandez was a struggling trader until he met and learned from Diamond.)

During days 3 and 4, you’ll see your newly-learned trading methods in action as Dick and Roberto make real-money trades in live market conditions.

SPECIAL OFFER: Register by June 15 and save $300!

Secure your seat -- and save, and learn -- at the Market Mentor Trading Course, July 22-25 in Orlando, Florida, today >>

Tags: Dick Diamond, futures trading, technical analysis, technical indicators, trade targets, Traders, trading lessons

May 13-16

Las Vegas Money Show

July 10-13

Freedom Fest Conference

Most Read

Highest Rated

Education

The Elliott Wave Principle is a detailed description of how financial markets behave. The description reveals that mass psychology swings from pessimism to optimism and back in a natural sequence, creating specific Elliott wave patterns in price movements. Each pattern has implications regarding the position of the market within its overall progression, past, present and future. The purpose of Elliott Wave International’s market-oriented publications is to outline the progress of markets in terms of the Wave Principle and to educate interested parties in the successful application of the Wave Principle. While a course of conduct regarding investments can be formulated from such application of the Wave Principle, at no time will Elliott Wave International make specific recommendations for any specific person, and at no time may a reader, caller or viewer be justified in inferring that any such advice is intended. Investing carries risk of losses, and trading futures or options is especially risky because these instruments are highly leveraged, and traders can lose more than their initial margin funds. Information provided by Elliott Wave International is expressed in good faith, but it is not guaranteed. The market service that never makes mistakes does not exist. Long-term success trading or investing in the markets demands recognition of the fact that error and uncertainty are part of any effort to assess future probabilities. Please ask your broker or your advisor to explain all risks to you before making any trading and investing decisions.