ebook Chapter 6
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Chapter 6
Our Trading Strategy
As you can well guess, the whole idea of market trading is to buy low and sell high. It is also to enter short positions at the peaks and cover, or exit, your short positions near the lows. Isn’t it great how we make money when the market goes either up or down?
The honest truth of market trading is that if you can even come somewhat close to hitting the peaks and valleys correctly and consistently, you will make a lot of money and you will make it relatively fast! So, our entire Trading Strategy is to identify and act upon the market peaks and valleys in real time as closely as we can.
That said, we are NOT in the business of hitting the peaks and valleys perfectly. That is like trying to catch a falling knife. What we aim to do is to take the “sweet spot” out of the important market moves by entering our trades just a little bit after the trend reversals and exiting them just a little bit after the next trend reversals.
Sounds so simple, doesn’t it? Just ask all the people who have lost their entire life savings by making poor stock market investments and trades using poor trading systems (or no trading systems at all). Duh! The day of "buy and hold" went away a long time ago.
OK, just to be perfectly clear here, our Trading Strategy is to apply our Trading System Rules to buy and sell consistently near the market peaks and valleys. We need to limit our risk and maximize our profits. Our Trading Rules automatically limit our risk for us with the Mars line. The Mars line with it's reversals, acts as our "stop-loss" manager.
We also must employ sound Money Management strategies and never risk too much trading capital on any single trade. Money management is beyond the scope of this small e-book. You must study it elsewhere. The best Trading System in the world is totally useless without proper Money Management!
The amount you put at risk in each trade depends on your leverage factor and on your previous Trading System statistical results. In the near future I will produce a guide book for these important issues. For now, study up on Money Management and only risk a prudent amount that allows you to sleep well at night.
NEXT
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Title Page and Preface
Introduction
Table of Contents
Chapter 1 My Discovery
Chapter 2 Going Public With My Discovery
Chapter 3 Some Background
Chapter 4 The Two Indicators
Chapter 5 The MARKET MATRIX 2.0
Chapter 6 Our Strategy
Chapter 7 Trading Rules
Chapter 8 Secret FOREX Code - Cracked!
Chapter 9 Automatic e-mail Alerts
Chapter 10 Conclusion
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email Stan at: sdgrist@yahoo.com
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