MASTERING TRADE SELECTION AND MANAGEMENT ppt

[...]... Chapter 1: Before You Trade • 15 learning to enter trades or positions only because of specific price behavior, known as a setup and trade trigger, in an individual market Different Trade Types There are three different trade types we will be covering, and their designation will depend on how long we plan on staying in the trade The first is a position trade, also called a trend trade, which we plan... click that mouse and enter a trade, you are going to have to put in long hours reading and rereading this book, viewing and reviewing your course material, and, depending on whether you are a day trader and where you live, going to bed early enough to get a good night’s sleep and waking up at 1 or 2 a.m to practice trading in your demo account in live markets during Chapter 2: Preparing to Trade • 21 the... if you are a swing trader or position trader, or even if you are a day trader and you step away from the screen for a moment Let’s start out with what times of the day not to trade, and remember that these are going to be times when there is low volume in the market The chart in Exhibit 2-1, with volume figures in the bottom panel, makes it quite clear when to trade and when not to trade on an hour-by-hour... teach you to trade, they need to teach you to overcome past experiences and other distractions, and, above all, to listen Trading is a game of thinking before doing It’s extremely important that you be able to follow orders and stick to your plan, and more often than not, those orders and that plan will tell you to do nothing now and wait for a better setup, or to keep your stop where it is and stay in... left blank Chapter 1 BEFORE YOU TRADE ost new traders realize after only a few live trades that they are terrified of the markets, and this fear is a major reason why so many traders fail M Fear and Trading Most people aren’t able to execute under the pressure that their fear creates I’ve had plenty of clients admit that putting on a live trade, particularly after a losing trade or worse, a string of losers—is... to Trade • 21 the London session And as with any job, you are going to have good days and bad days, particularly in your first couple of years, and you may have slumps during which you even doubt yourself and this dream of being a successful trader What will carry you through these times is your work ethic If you cannot get out of bed and prepare yourself mentally to trade after a losing day, then you... out of bed and prepare yourself mentally to trade after a losing day, then you are nearly assured of hanging onto the pain and confusion of a loss even longer If you are a professional and you understand that any business has expenses, and risk, and liability, and you fully understand that if you show up for work unprepared, late, or even not at all, you will assuredly fail, then you are in a better... case in trading It’s your job to be patient and seek out the best trade setups and triggers with the most favorable risk/reward scenarios And once you enter a trade, you need to know how to manage that trade without deviating from your trading plan You need to learn to work smart, not hard You are going to need patience, which is why so many trading coaches and authors spend so much time on teaching... of sense and is applicable to trading as well because we all love being right, and getting paid for it makes it an even more dangerous aphrodisiac Stick to factbased assessments, such as the pattern of highs and lows in a market and the current price direction on the monthly and weekly charts, and do not fall into the trap of trying to predict a market’s outcome or, Chapter 1: Before You Trade • 11... understand about having a positive attitude and envisioning success is how it puts us physically in the right state to be able to expand our minds and enhance our senses so that we can avoid mistakes and make the right decisions We need to understand that the negative, restless 24 • PART ONE: Market Analysis thoughts that pop into our head have nothing to do with the reality of the current job at hand . of trade selection and management, this book also addresses the necessity of being able to draw up a plan and stick to that plan. By helping you understand the necessity of developing your “trader’s. Framework 115 PART TWO: TRADING 125 Chapter 7 Trade Setup 127 Chapter 8 Trigger Defined and Trade Entered 143 Chapter 9 Trade Management 161 Chapter 10 Trade Examples with Trading Plans 191 Conclusion. Association and a Committee of Publishers and Associations TERMS OF USE This is a copyrighted work and The McGraw-Hill Companies, Inc. (“McGrawHill”) and its licensors reserve all rights in and to