Each time that you enter the market we don’t know much it will win or not but we do know how much we might lose for this trade. You should prepare for the worst by imagining that a market crash could occur at any time after you enter the market in a buy position. Imagine that an unexpected soaring of the market could occur at any time after you enter the market in a sell position.
Before you place a trade or your order is filled in any market, you must know clearly ahead of time where to place your protective stop based on the key support or resistance levels at that time. You may not know how much you might win for the trade but you must always know how much you might lose for this trade – at what price level it is clear that you are on the wrong side of the trade – and where you must exit the market at once. You should always prepare for the worst: imagine that the market crash could occur at any time after you enter the market in a buy position; imagine that an unexpected soaring of the market could occur at any time after you enter the market in a sell position. If you take care of your losses the market will take of you because you are not chasing profits, you are given profits.
AbleTrend can help you to place intelligent stops that are based on market’s true support and resistance levels. Here is a recent example of E-mini S&P 500 chart with AbleTrend Guidance Chart.
There are many tricks and best practices in turning a trading system into a successful operational reality. That’s why our 30-day trial offer includes one-on-one help & weekly web calls to help you to make the most out of AbleTrend. Ultimately the best way to learn this skill is by picking up the software, trying it out and practicing.
If you’re not already using AbleTrend, use promo code: WTMF10 to get extra 10% off for AbleTrend 7.0 30-day trial.
For addition insights and articles on trading, see our blog: blog.ablesys.com
Or 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
With Warm Regards,
Grace Wang
AbleSys Corp.
gracezh@ablesys.com