Which Way?
The TCC Framework
From information to decision.
- Which Way?
- When?
- How?
Three questions. One decision process.
Market Information
Different inputs. Same need for a process.
Inputs
- Technical
- Fundamental
- Data
The TCC decision process
- Which Way?
- When?
- How?
Analysis is an input. The decision is the skill.
Which Way?
Understand the market context.
This is about developing a view of what the market is doing before deciding whether action is appropriate.
Analysis may contribute information, but the objective is context rather than prediction.
Read before you react.
When?
Wait for the right conditions before you act.
Having a market view does not automatically mean there is a trade to take.
The trader still needs appropriate conditions.
Wait for your condition.
How?
Know how you’ll approach the trade.
If your conditions appear, there are still decisions to make. How will you approach the setup? Where is the risk? What would invalidate the idea? How will the trade be managed?
You can’t control the outcome. You can control the process behind the trade.
Manage what you can control.
Process In Practice
A process is only useful if you can follow it.
The questions structure the decision. The behaviours support the trader in following the process.
One connected process.
01 02 When?
Wait for your condition.
03 How?
Manage what you can control.
Know what you’re looking at.
Know what you’re waiting for.
Know how you’ll respond.