THE “ONE BITE PIZZA” CHART REVIEW
Dave Portnoy of Barstool Sports is famous for his “One Bite Pizza Reviews.”
Dave Portnoy of Barstool Sports is famous for his “One Bite Pizza Reviews.”
When it comes to trading the markets (particularly options) his method has helped me use the “One Chart Visual Review.”
According to research approximately 90% of information visually transmitted to the brain is understood and retained (or immediately recognized) than is information transmitted by written, or other means.
Vision is our dominant sense which is probably why visuals are so effective for communication, learning and memory.
We’re all familiar with the phrase that “a picture is worth a thousand words.”
It is for this reason that I personally use the “One Chart Visual Review” when looking at charts, indicators, oscillators and other information provided on this wonderful website called useThinkScript. I try to view every post made on this site in order to see how it fits my picture for trading purposes (and I find more good information on this site than any other!)
In just a few seconds, a view of any proposed chart on this site, is much like the “One Bite Pizza Review” which lets one know a lot of information that can be gained with a mere glance.
This is the reason I like a chart that is not too busy! If I can’t see on one simple chart the information needed, how is an array of charts going to help any better? Charting that overanalyzes information is like reading a novel to find what the ending might be five chapters later.
This is why I don’t like “over-information” on a chart, nor more than one lower chart at the most. My brain cell can only absorb so much! This is also the reason I don’t like to trade more than one or two stocks at a time. Why screen a host of stocks when they all do basically the same thing: move up, down, or sideways? All I’m looking for is a possible (probable) change-in-direction taking place in a short, or longer term, time frame on very few stocks at the most.
During my 12+ years of trading options, it has been my goal to develop charting that is pleasing to the eye, gives information necessary in real time, and shows probable (possible) change-in-direction. My 82-year-old brain (coming next Sunday) needs the KISS principle to adequately analyze anything, which is why I have spent the past few years developing my AsGoodAsItGets charting.
Many of my losses have come when I think I know what the market is going to do rather than rely on the information being provided visually. Remember the market itself only provides a 50/50 chance (At-the-money) of moving one way or the other. We need to use adequate charting to hopefully gain an edge on the process. Keep in mind that most indicators have the ability to repaint as the market (stock, ETF) changes its mind.
There is a lot of information on “Buy the Dip” trading (which has been very effective for me) although my best trading usually comes from trading “The Extended High.”
It has also been my experience that the market doesn’t usually gap up at the rate it can gap down. I find the escalator ride up easier to defend than the elevator ride down if my trades have been placed wrongly, and I need to defend a position? (I will talk about Buying or Selling positions in another post).
Well, enough ramblings of an old man. Find yourself some good visual charts and do the “One Chart Visual Review.” That just might be As Good As It Gets?
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