Trading 100

The absolute basics of terms and terminology, software usage, how to use trading and investment software, rudimentary technical analysis I am assuming you know AND IF YOU DON"T we teach that from Trading 101 on...

There are three strategies or systems that we follow:

Price action with entries and exits and stops based on statistics and probabilities with defined entry and exit points. This strategy's rules stay consistent across time intervals and entry and exit points however what does change in the distance or amount of profits that you take and when stops are placed.

The other strategy that we follow is a correlation co efficient strategy. We compare the correlation of instruments and take positions in each depending on the correlation of the instruments and our calculation of the moves.

Our capital management and trade management system strategy is different than most and perhaps this is one of the reasons why our returns have been exemplary. They are; Stacking our systems and strategies. This is a technique we deploy in that we FIRST look for a trade or to take a position in that is poised to be a longer term larger return position. We expect to be in these positions for weeks, sometimes a few months.

SECOND we then for an opportunity to arise to take a medium term trade or a swing trade then we take that too. We expect to be in these types of positions from a day to 10 days.

THIRD we trade on a much quicker basis making 3 to 5 to 10 trades a day. We use a high probability formula to make our decisions. You will learn the precise formula in our teachings below.

The Absolute Basics for the strategy that we follow.

There is a ton that you can and will learn in your journey of becoming a person who will learn how to make a living trading or becoming a professional trader. Before you become a professional or someone who can make a living trading you need to:

learn the basics of terms and terminology.

Keeping trading simple is very important. You don't need to over complicate things. But you do need a set of rules and a strategy that works over the short, medium and long term so you have good entry points, good exit points and so you aren't taking too much risk.

I am going to explain each of the terms and how to weave them into making a successful winning trade and hopefully many successful ones after that.

You need to know....

How to identify and enter a trade at a good Entry Price: The entry price is the price that we have decided to enter a trade. How to make that decision of where to make that entry is important.

We have a rule on how to identify a good entry. What is the rule?

The rule is this:

Buy when the price goes from below to above and closes above the 100 period simple moving average after it had been below the 100 period simple moving average.

How to identify and transact a good Exit Price: this is the price that we have identified and calculated to take a profit at.

We do this by using a look back at the movement of the price of that instrument and the statistics of the movement of the price. When transacting the exit, we most often use a limit order price on our exits. A limit order is a price that we can type into the trading software that tells the software to take a profit or a loss automatically when the price is hit and then triggers the trade. A limit order is an order to buy or sell an instrument at a specific price.

Protective Stop: Ok, we have entered a trade at what we have identified at a good entry price. We have entered a position and we have bought a certain instrument. Let's call it one share in Apple Computer stock at $100. We have bought it and now we want to sell it and achieve a profit so now we have typed in our limit order to sell our position at $110 to make a $10 profit on our position. As soon as we do that we should also put in protective stop order which is called a stop limit order. A stop limit order tells the computer to stop or sell your position at a certain price below what your entry price is just in case you are wrong in your directional bias.

If we are successful in doing the above, over and over, in small trades and large ones, over and over, using patterns to identify the entry, statistics and positive expectation and patterns to realize a profit, then you will be on your way to success in trading for a living or becoming a professional trader.