I don’t let the trade go to max loss, but 5% is what I would be willing to risk going into a trade. Risk management rules: My default risk for a trade is 5% of my account. I generally place stops right outside the 2 ATR band on a daily chart.Įxit, take profit, and/or trail-stop rules:įor trade exits, I look at Fibonacci extensions to find resistance levels, and also watch for signs from my indicators that the move is weakening. If it’s trading within 10% of 52-week or all-time highs, this is an especially good setup.Stacked moving averages on the daily time frame chart.Price above the 34-period moving average.Reversion to the mean plays in a trending market I will trade all time frames, my favorites being the Daily and the 30 minute charts. I trade futures, indexes, options, options on futures and indexes, and stocks. In my small account, the goal is consistent growth.ĭon’t make a decision that could lead to giving back all my gains My goal in my larger trading account is to make 2.5% to 5% weekly, and wire out 2.5%. Trying to impose my will on the market is pointless. Go into looking at the market without a bias - look at what the charts and internals are telling me and then go from there.
