Managing risk with technical analysis (2004)

www.pring.com Martin J Pring President of Pring.com How to Manage Risk Using Technical Analysis www.pring.com The first trading objective is to preserve capital www.pring.com #1 Trading rule… Cut losses quickly, let profits run www.pring.com First trade 50% loss! www.pring.com Next trade 50% gain www.pring.com Next trades make 10% each www.pring.com Next trades make 80% www.pring.com Still not back to break even www.pring.com A key trading rule is always run scared www.pring.com The number one decision when entering a trade is to know where you are going to get out if the market goes against you www.pring.com 50-days 100-days 2L S S H www.pring.com 100% objective 50-days 50-days 1L S S H www.pring.com 200% objective 100% objective 50-days 100-days 2L S S H www.pring.com 1L www.pring.com 1L 5L www.pring.com Primary bear market S S H Bullish breakout in a bear market www.pring.com 496 Bottom Patterns in a Bear Trend Bullish signals in a bear market 5L in Bear Markets www.pring.com 496 Bottom Patterns in a Bear Trend 5L in Bear Markets 5L in Bull Markets www.pring.com Pointers for a Primary Bull Market Positive long-term KST Security should be above its long-term (e.g.,200-day) MA Click here for online KST education If you cannot open the “click here” hyperlink, hold down the Control key (Ctrl) and click again www.pring.com H&S Bottom www.pring.com H&S Bottom Momentum and Stochastic not overbought at breakout time www.pring.com Double Bottom Stop loss line www.pring.com H&S Bottom www.pring.com Double Bottom www.pring.com The End