Is Trading like a business?

owning a business In a successful business you will have revenue streaming and will have to have expenses in order to get full capacity and production from the business.

Income from sales from a product or service will be generated but not with out expenses and losses , the objective of a business is to maintain an overhead and profit substantially while accruing minimal loss and expense.

It is important to have a strategy and planned business in order to get the best production and  be successful.

 

Trading is and should be treated like a business

Is trading any differentTrading is not different you have profitable trades , losing trades , you pay broker fees,pay tools, websites, scanners , you must manage losses and maintain productivity using risk management and money management.

Trading should be run like a good business

In trading you have :Revenue - Winning Trades Expenses -Losing Trades

A Trading curve does not go straight up

Capital Curve Traders must understand that they will have a capital curve , some traders use profit.ly some have Etrade 360 and can see this curve with there brokers understand that you will have an up and down curve but objective is to have it on a uptrend incline rather than seeing just a even plateau or parabolic move high then big low erasing any gains

Myth: Successful Traders never lose, that couldn't be farther from the truth, solid traders manage gains and losses

"Its not whether your wright or wrong thats important,but how much money you make when your right and how much money you lose when your wrong " - George Soros

"80% of your profits will come from 20% of your trades" -Paul Tudor Jones

Risk Reward and Probability

Divergence where u buy where u r taught to buyDivergence is that dotted red line that shows the move lower, We have taught members that this is the level in the stealth phase to add to a position rather than wait until a stock is promoted or above the moving average it is a great opportunity to add at red parallel line or arrow since it is the confirmed bottom many traders will not buy this level as they are costumed to wait for the breakout , the moment they chase they buy at or above the breakout they take a loss because they got in way too late and then they sell for losses the smart traders wait for that confirmed bottom buy the capitulation or stealth range and sell higher

risk rewardUsing the box pattern is a great way to build a buy zone range , giving traders a good opportunity to buy bottoms at oversold conditions for moves take a look at this chart

These are text book probability trades that allow traders to set buy zones and have mental stops that limit risk , there is psychology involved understanding that you are taking low risk compared to higher reward must give traders confidence to hold and accumulate levels at lows

Traders that wait for stocks to break MA levels are giving away profit , traders that await power zone RSI or hype take on more risk while traders that buy the stealth give maximum potential and lower risk

 

divergence on short where u get inFor traders that short or trade options same setups except on the down side many of the setups given show that dotted line divergence signalling either a top or bottom in this case it is a market top.

Usually in between you will have 20 days of a move therefore its is essential to take on more time when buying contracts , you will see more significant move and take on less risk

When traders understand to be more mechanical and less emotional they will become better traders as a whole.

 

 

 

emotions cloud judgementFact is that trading is systematic and most bad trades are caused either by hype or emotion , if traders have a disciplined plan and adhere to a specific strategy never changing or taking short cuts they will likely do well rather than lose most of there investment 80% of traders trade each stock differently that is why likely 80% or more fail at trading

 

 

 

 

Pull Trigger when Setups are executed

see opportunity take it pull triggerWhen you have a system and price action triggers then there is opportunity ,Do not be afraid and do not waste time take it , execution is key

 

 

 

 

 

False Breakouts and STOPS

false BreakoutsTraders use stop losses or jump in on breakouts , they usually lose money some traders will quit a team mainly because they do not get into the hype parabolic plays and listen to all the jive that 400-1000% was made and missed opportunity

Well then good luck, false breakouts or chasing causes traders to either buy high sell for lows

And on Options when false breakouts happen they usually STOP out not abiding by STOP on MARKET CLOSE

High Frequency Trading STOPS you out SMART MONEY tricks you!

 

answer to stop The answer is E) You should only use manual STOPS and STOPS should be either at Market close or 2nd consecutive close below STOP level

Why? Because High frequency Traders algorithms in bigger markets squeeze out STOPS and get STOP  triggers then they push markets higher always await close confirmation

For OTC same thing , seen many traders lose opportunity with REDG , TBEV the latest where traders stop on emotion and stock rallies thereafter

prive never stopped or closedRed signals the DAY CLOSE on the chart see how the markets slightly go higher squeezing and triggering STOP losses than quickly reverse on the traders making them bad trades

no stop out Silver

STOP strategy

how do stops work

Which is strongest support A or B?

what is strongest level 2 Typically most traders will say A because its testing levels 3 x but as many know how are setups work we want the highest probability so the answer is not B

 

 

 

 

 

The Answer is A

high probability entryThe answer is A because that is the master support bottom and with the level being tested more than 3 x shows weakness and a bias that the stock likely break that level lower , now understand that the A is the lowest point up until now so should understand that studies show that is the level more traders or investors will be willing to buy raising probability profitable trade

 

 

 

double bottom u buy at that bottom

 

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