The Secret of Successful Trading

"Successful traders have a larger edge and better money management than unsuccessful traders. Unlike popular belief however, this study shows that the smaller edge of successful traders is not the cause of their failure. Traders' failures can be explained almost exclusively by their poor money management practices."

"The Secrets of Successful Trading", Fernando Diaz

Saturday, April 10, 2010

How to trade the H&S pattern on 5th April 2010




The H&S pattern which i posted earlier unfolded nicely last week. The pattern brought about 2 entries by taking H1 Outside Bars as signal candles. The 1st entry came about at the right shoulder of the H&S pattern with a nice Outside Bar pattern and the 2nd entry came about at the break of the neckline of the pattern. Both entries carries high R:R ratio if one were to be patient enough to trail their stops as each swing highs form in H1. From the graph there are a total of 4 swing highs formed before we eventually reach the bottom of the trading range. As each swing forms, stops will be tighten to the last swing high, so following this you will be moving your stops down with the trade for atleast 4 times before it gets taken out making a massive gain.

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