Humble1 advice Part 2

Posted on July 19, 2005
Tags: General rant |

Part 2.

I trade both futures and stocks. If you are a breakeven trader, then you are light years ahead of the crowd. Find one setup that you seem drawn to and trade it until you are perfect with it. This is easy to do with Emini futures becasue the markets are not jolted by news like stocks are. My number one priority is to get into setups that have a 3 to 1 risk reward ratio. Your confidence wil come when you find one technique that you can trade over and over with confidence. One of my favorites is a tight symetrical triangle breakout on a daily chart that is low in the trend on a weekly chart. Take a look at ALSC in both the weekly and the daily charts. Notice how tight the price action is. Forget the indicators. On the daily chart, I can buy this right here @ 3.55 if I want to and set the stop near 3.40. or just outside the symetrical triangle lower trendline. These are the types of setups you want to trade. Watch this one, but look for others. Also you want to time you long trades for stocks, with the general market. Now is a tuff time to buy anything because the market has been run up and there are not many new bases out there. Look at MSO on 9/15/2004 - That is what you are looking for. The day they locked her up is the day the thing broke out. let me know how you make out.