Secret Five: Stick with the “big” trend until a change in trend tells you to exit.
It is easy to take a small profit and run but in the end you will most likely lose overall with such a trading strategy. To succeed you must go the opposite way of majority traders. You must be willing to risk some existing profits to make even more by sticking with the big moves. AbleTrend empowers you to follow such moves as long as possible by risking an “intelligent” amount of money to follow the true direction of a trend. The software will tell you when to exit and/or change the direction of your position, here is an example:
The type of stops that you use could determine if you win or lose
One of the criterions in selecting a good trading system is that if the system has a built-in dynamic stop system. As Warren Buffet puts it “Rule number one in investing is don’t lose money; rule number 2 is don’t forget rule number one” Any trading software can suggest stop-placement but you should be aware that the type of stops that you use could determine if you win or lose. You should never feel comfortable using arbitrary stops. “Should I use a 3% loss stop or a 5% loss stop?” this is a typical question from traders who are using arbitrary stops. You should never feel comfortable using arbitrary stops. Instead AbleTrend stops are principle-based. —They are defined by the market’s own support and resistance levels.
The new generation of intelligent stops
AbleTrend stops are the new generation of intelligent stops. These intelligent stops are dynamic they are automatically calculated with the built-In feedback loop of the software as prices change. Because AbleTrend stop levels are determined by actual market support and resistance levels they are objective, back-testable, easy to use, and they are highly recommended by many of its users.
How to place AbleTrend stops
AbleTrend T2 support levels indicate supporting floors for buy positions; AbleTrend T2 resistance levels indicate resistance ceilings for the selling positions.
AbleTrend stops shall be placed at 1.5 to 2 levels away from price below the T2 support levels for buy position depend on your risk tolerance; AbleTrend stops shall be placed at 1.5 to 2 levels away from price above the T2 resistance levels for sell positions depend on your risk tolerance. You may do some back testing on the historical data to confirm the best stop levels for the particular market that you are trading.
In the upcoming blog we’ll introduce Secret Six: Only Move Stops in the Desired Direction of the Trend
The best way to learn a skill using trading software is by practicing it. Though the webinars and free one on one trading sessions will help you to prepare for actual trading on the live markets, it will not tell you how your psychology will react to the experience. This insight is gained only through experience, so give AbleSys trading indicators a try today. To get extra 10% off for AbleTrend 7.0 30-day trial, here is the code: WTMF10 (order online).
You may also learn more about AbleTrend on our blog: blog.ablesys.com
And watch archived sessions from our introductory and member’s webinar series:
Click here to view our youtube page
I welcome your feedback. Did you like today’s message? What other topics would you like to see? Please let me know at gracezh@ablesys.com
If you are an AbleTrend user this is a great time to share and introduce this great tool to your family and friends for the prosperity of 2016 and the years to come.
Happy Holidays!
Grace Wang
AbleSys Corp.
gracezh@ablesys.com