Basics

  • Introduction to Trade Management

    One of the biggest myths about trading, and what is usually stamped into the heads of traders from the very early stages of their careers, is that successful entry techniques will lead you to consiste...
    Nov 11, 2008 2 Comments

  • Mechanics of Risk/Reward

    A newer trader is likely to overlook or disregard many discussions on risk/reward because they are either busy fantasizing about millions in profits or too inexperienced to understand the importance o...
    Nov 11, 2008 2 Comments

  • Position Sizing

    Tied to risk/reward, the size of your positions dictates how much you are willing to risk per trade versus how much you will gain. As a general rule of thumb, I risk no more than 1% or 2% of my portf...
    Nov 11, 2008 2 Comments

  • Intro to Stop Losses and Taking Profits

    When we enter any trade, we have two basic goals: 1. Obtain the maximum amount of profit2. Protect ourselves from losses It starts from the beginning . Look for the most profitable opport...
    Nov 11, 2008 3 Comments

  • Stop Losses

    In my experience, and as I have discussed in other articles, I tend to focus more on what can go wrong rather than what can go right when it comes to taking a trade. Because of this, I always start wi...
    Nov 11, 2008 4 Comments

  • Taking Profits

    In order to set a reasonable profit target, we need to know the following about our trade: 1. Is it a countertrend trade and against market sentiment?2. Is it in the direction of the trend and in line...
    Nov 11, 2008 5 Comments

  • 60 Trade Examples

    Reading is one thing, but pictures are worth 10x what I write sometimes. At the expense of sounding like a cheap advertiser, there are literally tens of thousands of pips in these examples alone, comp...
    Oct 20, 2008 12 Comments

  • Entering Trades

    We have developed a basic technique for entering a trade at these key levels, taking into consideration two important things: 1. We do not want to miss the trade by trying to enter at the best possibl...
    Oct 01, 2008 No Comments

  • The Rules

    As with any strategy, rules need to be incorporated into your trading plan, and followed objectively to ensure long-term consistency and success. The following rules are written for this particular st...
    Oct 01, 2008 3 Comments

  • Knowing if the Level Will Hold: When to Fade, When Not to Fade

    Confidence in any endeavor is usually just a function of experience. Trading is no different, and successful traders are rarely born overnight. From our own experience, we have developed a basic check...
    Oct 01, 2008 7 Comments

  • Stacking Bricks

    I’ll commonly refer to price in trending environments as stacking bricks, because you will notice over and over again that price forms “blocks” and stacks diagonally, one on top of the other...
    Oct 01, 2008 2 Comments

  • Fibonacci Extensions

    Market technicians have been using Fibonacci levels to identify turning points as well as determining price objectives for years. We focus in on them because of the fact that they are so widely used a...
    Oct 01, 2008 2 Comments

  • Strong Versus Weak Levels

    Not all things are quite the same in trading. Some levels are unarguably much stronger than others, and stand a much higher probability for success. When we are looking to determine which levels are s...
    Sep 24, 2008 5 Comments

  • Indicator Systems and Why Many Fail

    Once upon a time, I bought a trading platform one time that included approximately 3,000 indicators. I thought “wow, I would have to be a total idiot not to make money using these” The fact of the...
    Sep 24, 2008 4 Comments

  • The Basics

    Our strategy is simple yet requires thoughtful analytics like any other system. We enter trades only at key levels of support and resistance, sometimes employing the use of diagonal trendlines and Fib...
    Sep 24, 2008 1 Comment

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