The dangers of buying breakouts – SWI case study
One of the best systems to learn as a new trader or investor is the CANSLIM method developed by...
read moreThe Importance of Risk Management and Position Sizing
“Control your risk; the returns will take care of themselves” It wasn’t that long ago that I realized the true meaning of that old trader koan. I must have read or heard the quote hundreds of times before I actually understood it in the way that top-traders do. What I thought of as a cliche, turned out to be a Zen koan that I just didn’t “get” yet. When I look back, I attained this “trader satori” while I was working on a trading system late one night. I was comparing some different position sizing strategies for a complex...
read moreSequential Breakouts as Day Trade Setups
Since there are so many Sequential breakout setups out there, I thought that I would share how I use Sequential signals to point out day trade setups. In the daily chart you can see that NTGR has been hugging the upper portion of the shaded channel (original sequential sell stop loss). Today there was a nice price rejection of that area and I noticed an oversold reading on the range expansion index (REI), indicating that a bounce could be coming. So how should I play it? First, let’s zoom into the 30 minute chart and look for a good entry point that satisfies our risk management...
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