Sunday, July 17, 2011

10 Principles ( Technical Lesson )

 10 Principles
  1.  Buy and sell on breakouts of support and resistance. Or, sellwhen a currency pair hits resistance and buy when it hitssupport. I teach this in the 1 on 1 training, and this is my major trading strategy.
  2. Stop trying to make $8 million on every trade.
  3. Always have a stop loss in place. Always obey your stop Losses.
  4. Goal: + 10 pips every time you trade.
  5. You can set your stop to break even on 10 pips of profit, and then go for more.
  6. There is no ‘makeup’ strategy. If I take a loss, then I’m just trying to end up with a 10 pip gain for the day. If I can’t get it, then I don’t try for 20 the next day, or whatever. I can keep trying for the 10 pips gain as long as I haven’t lost more than 5% of my capital.
  7. Time: I can trade for a set number of hours per day, meaning I can have the trading platforms open and sit at my computer for a max of, say, 5 hours per day. If I can’t earn my 10 pips during that time, then I can set my stops and limits and walk away, but I can’t actively watch the market any longer.
  8. You must have a daily routine. More on that below.
  9. You do not have to trade every day.
  10. Cut your losses as early as possible and ride your gains as long as you can. Stops should never be less than 15 pips

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