A strong uptrend is marked by higher lows, a strong downtrend by lower highs. By following strict yet simple rules, a bond trader can ride a strong trend and limit risk. The key is in recognizing the early warning signs of a new trend.
An E-mini S&P 500 day-trader constantly faces two questions: Is now a good time to enter a trade? Should I go long or short? A linear regression intraday price channel can provide a visual answer.
The key to making limited-risk profits is a willingness to be patient. Do not enter a trade until a situation meets your harshest conditions. A strict definition of an uptrend is a series of
In a rally or break, some stocks will lead their sector and the broad market. Generally, you should long the strongest stocks in a rally and short the weakest in a break. You should ignore followers.
The long the strongest, short the weakest concept not only applies to outright positions, but also can be an effective guide for spread trading. Indeed, spread trading is a relatively economical and
Intellectually your answer is probably: “I would long the strongest, of course.” However, for most of us, when we face real price action and the possibility of losing, our intellect may undergo a
You can lose money buying a rally. You can lose money shorting a break. The key is timing. If your own experience isn’t enough to convince you of these two trading truths, consider the following
In algo trading, in its purest form, a software program takes your money and, like a human money manager, decides how and where your money is traded or invested. It will look at opportunities around
