Tuesday, January 4, 2011

the reversal switch

in day trading

stop loss is not to get out of the market,

it should be used

to reverse the trade direction,

but with a golden rule

not to switch direction more than 3 times at all!

when stop loss is used

as a reversal-switch

the trader is under pressure

(and rightly so)

to think thrice before

setting the stop loss

and triggering it spot on!

this is likely to force him/her

to learn indicators hard

and have a clean dependable method!

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