The 3Dimensional Trading Breakthrough
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
<strong>The</strong> 3 Dimensional <strong>Trading</strong> <strong>Breakthrough</strong><br />
Section FOUR – “In the Trade”/Managing your Position<br />
Enabling objective: Upon completion of this section, you as a trader will know how<br />
to manage and effectively control your risk in any market scenario confidently,<br />
independently, and professionally, without error or hesitation.<br />
What to Look for in “Price Discovery”<br />
and Changes in Momentum<br />
<strong>The</strong>re are many things we can control in our lives. First, we decide what time we<br />
are going to wake up and get out of bed in the morning. <strong>The</strong>n we decide if we are<br />
going to shower with warm water or cooler water. We decide what we are going<br />
to wear before we leave home that day. <strong>The</strong> list goes on to about a thousand<br />
other decisions in an average day. One thing that we will never be able to control<br />
is market direction!<br />
As a professional speculator, I make educated decisions regarding direction based<br />
on research, and then plan my trade accordingly (just as in my days as a Navy Diver<br />
– I’d plan my dive, then dive my plan). This is not difficult to do after two or three<br />
trades. Here is how I do it: First, let’s consider trendline breakouts.<br />
Trend Line Breakouts<br />
Trendline breakouts are a very common way of determining when a market is<br />
proceeding to move up or down from its near-term opposite trend. Let’s draw<br />
a couple of trendlines on the following charts, and you will see exactly how the<br />
trendline breakouts can point to a different market direction.<br />
- 58 -
Change language