The initial stop loss

Why the initial stop loss should be the low of the opposite candle from your entry candle(for short it is opposite candle's high).
Most of the time the price goes back to test the immediate lowest point it made (which act as support), in BHP we see how it works. If we enter a long position after the 4th candle then our initial stop loss will be below 4th candle.

Trader Made Billions on Subprime

The wall street journal

One trade CVH long

Summery +2.6 R

Experiments

charts from the experiment

I am doing some experiments with my new trading system. I will reveal my experiments results at the end of the month.

Light & shadow 1

Why traders wins & loses

According to Jacke Bernstein

Why traders wins

1. Develop specific procedures.
2. Have a defined operational methodology.
3. Understand how your trading system works.
4. Be sufficiently capitalized.
5. Don’t take quick profits.
6. Begin using a system after it draws down.
7. Be willing to accept consecutive losses.
8. Don’t think too much.
9. Don’t set specific price target.
10. Don’t believe the tight stop loss myth.
11. Play your own game-avoid the news.

Why traders loses

1. Lack of defined methodology.
2. Poor self control and discipline.
3. Information overload.
4. Riding losses.
5. Taking profit quickly.
6. Poor understanding of system basics.
7. Lack of consistency.
8. Too emotional and suggestible.
9. Too close the makes.
10. Can’t accept more than a few consecutive losses.

Jacke Bernstein is the author of several books such as Day trader 1, Day trader 2,Introduction to technical analysis.

Support & Resistance

When the price starts to go up it faces resistance from the previous high. 50 SMA &200 SMA act as big resistances as well.

A chart from last week