Trade entry is not the most important part of trading

Risk Manager

Job #1

Tight stops = Larger size

Textbook Stop

Most traders areunder capitalized

The example was a perfect continuation play

These locations are targets for big players

Cluster of stops will be ripe for the pickings

Probes Below

Traders positioned long are taken out and their stops (sell stops)

get triggered

Astute traders buy these flushes below support gaining a

positions at a favorable price

Traders holding longs get the benefit of stopped

out traders buying back in which propels their

trade into profits

This is how price evolves

Objective stop loss placement &

respecting current rhythm (volatility) of

the market

This will force you to use smaller position

sizes

Question: If you are flushed out of a trade and the setup is still

valid, will you reenter?

Have you added up the cost of the trade and the loss (plus the potential second loss)

Measurements Of Market Swings

The second rally is part of the complex

pullback but we wouldn't know that at the hard right edge

Is this even a short trade you would take?

It is quite objective and does respect the moves of the current

market conditions

It can provide large stops which may turn

off many traders

ATR VolatilityStop Loss

It's more objective than the previous

method

ATR stop loss is calculated from closing price of entry candle

Will you use the closing price, high or

low price?

Be Consistent

You've probably heard the following:

"This is a low risk trading setup"

What does that mean?There is simply risk.

Are you jumping around in risk % to allow for different

position sizes?

I personally would not use a different risk

percentage unless it was part of the trade plan for

a particular setup.

Failure test

It is certainly not a low risk trade though.

You may miss some trades

Both of these tactics respect market

conditions

FREE INDICATOR

BLUEPRINT

www.netpicks.com/blueprint