lowtrade

[lowtrade]

A step in, step out, trading plan.

I use to swing for 25% in pennyland.

I use to trade in steps with pennies, if a chart pattern called for over a 25% move.

Because pennies can be manipulated and I lost so many times with chart patterns in pennyland. I developed this step in, step out ratio thing, to protect against manipulation causing a chart pattern failure.

Since those days, I've used this for position trades on the big boards. It works well with allowing total gains expected, if the move plays out as expected. And preserves capital, if it turns sour along the way.

You need an expected run over 25%. It's all in the numbers. I use to have a flow chart, showing possible gains & losses which was very involved. If I can find it I'll post it later.

Mean time read this for a general idea, how this works.
http://www.atomicbobs.com/index.php?mode=read&id=75579