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It is literally true that millions come easier to a trader after he knows how to trade, than hundreds did in the days of his ignorance - Jesse Livermore
[TRADING TECHNIQUE] Over the years, we have attempted every trading technique, methodology and technical indicator under the sun. Like all traders, we have made many mistakes, some blunders and finally converged on to a technique that has worked consistently for several years. This technique helps preserve equity and builds good gains over time. We hope this technique can add value to your trading journey too.
Step 1:- Understand the high probability wave structure. The best waves to trade are Wave 3 and Wave C because they generate huge gains. We analyze and filter over 25+ commodities, forex pairs, indices, stocks for these wave structures every few hours. Once this is identified, we select instruments mainly with Wave 3 and Wave C opportunities. So, we take care of this step for you. With more practice with us, you shall also be able to identify these structures.
Step 2:- Once the wave structure is clear, key supports OR resistances within this high probability structure is identified
NOW, HOW SHOULD ONE TRADE THIS ?
1. Trade each Key Support OR Resistance with tight SL. Tight SL is generally 15-20 pips/point around the key level. If the SL gets taken out, wait till the next level is reached and REPEAT......When the key levels hold, the micro-trend reversal shall generate GIGANTIC gains.
2. Always enter with a very small position and then add more lots in the direction of gains to ensure that the loss is very small in case the trade does not play out. Loss on any trade should not exceed 0.5-1% of your total trading equity. Any bet bigger than that is NOT WORTH IT. GET RICH QUICKLY does not work in trading. Only patience, perseverance and persistence works.
3. Once the position moves into decent gains, trail the SL from low risk to zero risk. As gains build, avoid closing the positions early. Instead, trail SLs to continuously lock gains. When the technicals look over-extended, book gains completely. We share updates continuously on trailing SLs to cost, locking/booking gains.
4. The advantage of this technique is that you will NEVER average your losses, NEVER hedge, ALWAYS operate with tight SLs, small positions. It will always PRESERVE YOUR EQUITY. There may be a few SL hit trades with loss of 15-30 points each, but the trades that make gains shall be very large. Most importantly, no tweet, adverse fundamentals, breaking news can increase your risk beyond the 15-20 points or 0.5-1% per trade. It is the best risk management trading technique.
5. If you are a serious trader, this technique with discipline shall work really well. The biggest positive of this trading technique is it shall offer you PEACE OF MIND while trading. Risk - always small and equity - always preserved. There is zero anxiety during trading.As a trader, it is important to trade with a consistent methodology and technique. It yields great results in the long run. Apply this technique with discipline for a few months and you will begin to enjoy trading.