NEWSLETTER TEMPLATES EDUCATION

My recommendation: In my opinion trend-fading is actually one of the best trading styles for the beginning trader to get his or her feet wet. By contrast, trend trading offers greater profit potential if a trader is able to catch a major market trend of weeks or months, but few are the traders with sufficient discipline to hold a position for that period of time without getting distracted.

Detailing Your Trading Plan. By now you know how much money you want to make, how much you are willing to risk, what market you are going to trade in which timeframe, and what trading style you'll use. In this section you will learn how to detail your plan by adding specific rules for entries and exits.

Entry Rules.

Entering the market is easy. You have the following possibilities: · You can enter the market based on certain conditions,

e.g. prices move above the previous day high or.

prices cross the 100-day moving average. · You can enter at a certain time,

• e.g. you are ALWAYS entering the market at the open or.
• you are entering at noon. · A combination of both,
• e.g. you are entering if prices cross above the 100-day moving average, but only between 8:30am and 12:00pm.
• There are dozens of books, magazines and websites that offer you countless entry techniques. But as a famous trader once said: "The exit is more important than the entry". So let's take a look at exit rules. Exit Rules.

Lets keep it simple here, too: There are two different exit rules you want to apply:

· Stop Loss Rules to protect your capital and.

• · Profit Taking Exits to realize your profits.
• Both exit rules can be expressed in four ways: · A fixed dollar amount (e.g. $1,000)

· A percentage of the current price (e.g. 1% of the entry price)