Letter to Zo, & ETH Options Introduction

These series of letters are directed to my 5.5 year old son. One day when he reads them, he will know how compounding works.

Dear Zo,

I dropped you to school. And now I am looking at Eth chart. I am using Trading View to check these charts.

Jesse Livermore talked about patience, he was a great trader. He focused on how it is important to trade at extremes. Finding perfect bottom or top is not the right method. Right method always is to find confirmation around those perfect bottoms or tops.

Now in 2025 we have ChatGPT and AI revolution, so I ask it for doubts and clear my thoughts. And one important lessons here is to find these extreme areas which we refer as overbought regions, or over sold regions.

If something is over sold, then new buyers will enter and create new positions. If something is over bought then profit booking can happen and sellers will push the price down.

In our current sprint, our aim is to focus on ETH Options. I asked ChatGPT about compounding and mental model. 50% compounding profits, we need 6 trades for 10X. Can we do it? Lets see.

How will I find extreme areas?

I am using a script called Falcon Horse. I will share this with you separately. It checks CCI levels for price points.

Our aim is to check what is CCI reading on Daily, 4H and 1H time frame and plan trades along with Falcon Wave Theory.

If you do not know Falcon Wave Theory then check that out here.

In next blogs I will post each trade with you on daily basis. I may not direct the blogs to you directly but always remember daddy loves you!

Love,

F