Sunday, November 2, 2008

Trading success

Pin bar set up is one of the most high probability set ups I use, last three months I have traded 11 pin bar set ups 9 of them was successful trade,one stopped out for small lose and the other one breakeven trade. One thing I have to say here before you guys ask me any question about pin bar set up that any of my trades are not solely based on set ups formation that I put on my blog. A set up is just a part of a winning trade; there are so many things you have to know and aware of, any one with moderate experience will agree with me.

What you need to know:
a) What is the direction of the trend(I don't suggest any one to trade counter trend )
b) Any big news (economic indicators) is releasing that day.
c) Momentum of the market
d) Sentiment of the market.
e) Length of a prevailing trend.
f) Accumulation and distribution.
g) Key volume on spot.
h) Length of impulse and corrective move.
i) Volatility
j) Supply and demand (support and resistance area)
k) Position size
l) stop placement
m) Target placement

What you need to have:

a) Adequate capital
b) Business skill/management skill(It will take at least one year to grow this skill, people who offer magic solution in their trading course are actually full of shit).
c) Ability to take risk and control emotions.
d) Ability to look for detail .
e) Logical approach to any trade .
f) Discipline is the must to winning trades.
g) Experience, yes reading experience traders articles, books will help you to cut down yours learning period but there is no substitute to real experience.

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