- 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.
- Stop trying to make $8 million on every trade.
- Always have a stop loss in place. Always obey your stop Losses.
- Goal: + 10 pips every time you trade.
- You can set your stop to break even on 10 pips of profit, and then go for more.
- 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.
- 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.
- You must have a daily routine. More on that below.
- You do not have to trade every day.
- Cut your losses as early as possible and ride your gains as long as you can. Stops should never be less than 15 pips
Sunday, July 17, 2011
10 Principles ( Technical Lesson )
10 Principles
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