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Old 02-11-2012, 02:59 PM   #31 (permalink)
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Hi pcespedes



I'll give you a longer drawn out answer-
When it comes to trading, one of the things that new traders have to do is learn to accept that there will be losses. Most traders start out looking for some sort of 'sure thing' even if only on a subconcious level. A holy grail.

What traders eventually learn is that a very big percentage of their trades will be losers. It will be close to half of their trades, so that is something one must learn to accept- half of your trades will lose money.

What makes traders successful is that they follow a money management system that limits how much they will lose on each trade. They do this because they know that there will be times that many trades in a row lose and they want to limit their loses.

This is truely the key- small losses so your account never suffers.

One uses a stop to limit their losses to a certain percentage of their account. For most, this percentage is 2%. By ensuring that they never lose more than 2% on any trade, they are 'keeping themselves in the game' through the tough times.

Cheers
Tek

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Old 01-02-2014, 11:34 PM   #32 (permalink)
 
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Hey Guys, when manually drawing support and resistance lines as you do for all these chart patterns should How should you draw these lines in relation to a time periods high,low,open and close prices. It's something that hasn't been covered in the course and I think it would be very valuable to know as traders the do's and don'ts when it comes to drawing support and resistance lines, because improper use of doing so could lead to bad trading decisions. Thanks

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Old 01-03-2014, 07:45 AM   #33 (permalink)
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hi carlos,

you can find more on this subject in our support/resistance page. personally, for me, it depends. as a rule of thumb, i prefer to use the open and close. however, if there is a long wick that really sticks out, or if there are multiple long wicks that stick out in a range, i might place greater emphasis on the highs and lows.
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Old 04-01-2014, 08:03 PM   #34 (permalink)
 
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Hi Simit,

In the graph about the descending triangle strategy you indicate that the distance between high and low is 800 points. Is it correct? Am I missing something? Something similar happens in the The Symmetrical Triangle Strategy graph.

Thanks for your answer and for sharing your knowledge.
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Old 04-01-2014, 10:01 PM   #35 (permalink)
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hi trantor,

the chart below shows a range of 500 points:



this chart is an ascending triangle, but the same concept holds true regardless of whether a triangle is symmetrical, ascending, or descending.

hope that helps

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