We trade based on the Law of Infinite returns.
LOW RISK; HIGH REWARD
Information shared is not my proprietary knowledge but rather a collection of ideas from knowledgeable traders who have shared it with me: @RadioSilentplay @dantheholy
LOW RISK; HIGH REWARD
Information shared is not my proprietary knowledge but rather a collection of ideas from knowledgeable traders who have shared it with me: @RadioSilentplay @dantheholy
SET A FLOOR:
The floor is your safety net. By buying at or near a floor, we are able to mitigate risk and buy at the proven strongest levels of support.
Analogy: The Apartment analogy
The floor is your safety net. By buying at or near a floor, we are able to mitigate risk and buy at the proven strongest levels of support.
Analogy: The Apartment analogy
SET A FLOOR:
The apartment in this case is much like a stock. Stocks have floors that are analogous to the 13th floor of the apartment. These floors are levels where demand (buys) ≥ supply (sells). If these floors were ever to break, this is a signal to get out of the trade.
The apartment in this case is much like a stock. Stocks have floors that are analogous to the 13th floor of the apartment. These floors are levels where demand (buys) ≥ supply (sells). If these floors were ever to break, this is a signal to get out of the trade.
SET A FLOOR:
However, because these floors have been proven foundational support, you want to buy at or nearest to the floor as possible. This way you can mitigate losses and make your trades low risk, high reward.
However, because these floors have been proven foundational support, you want to buy at or nearest to the floor as possible. This way you can mitigate losses and make your trades low risk, high reward.
SCALE INTO A POSITION:
It is important to create a buy zone once a floor has been established. By creating this buy zone, we give our self the ability to SCALE INTO a position that is near the floor.
It is important to create a buy zone once a floor has been established. By creating this buy zone, we give our self the ability to SCALE INTO a position that is near the floor.
SCALE INTO A POSITION:
Some traders use a ‘3 bullet approach’ where they will place an order at the top of their buy zone, followed by 2 further orders, possibly at lower levels. This way we don’t risk taking a full position just for the stock to fall closer to the floor.
Some traders use a ‘3 bullet approach’ where they will place an order at the top of their buy zone, followed by 2 further orders, possibly at lower levels. This way we don’t risk taking a full position just for the stock to fall closer to the floor.
SET A PPM:
A personal profit margin is an amount that YOU want to gain from any given trade. As the name suggests, this is personal and is not shared with other traders. We scale out the same way we scaled in. Don’t let greed prevent you from taking profits.
A personal profit margin is an amount that YOU want to gain from any given trade. As the name suggests, this is personal and is not shared with other traders. We scale out the same way we scaled in. Don’t let greed prevent you from taking profits.
CONFIRMATION:
When a chart confirms a key level break. This can be upwards such as breaking key levels of resistance, or downwards such as breaking key levels of support. It’s important to understand confirmation is defined as TWO CONSECUTIVE closes above or below these levels
When a chart confirms a key level break. This can be upwards such as breaking key levels of resistance, or downwards such as breaking key levels of support. It’s important to understand confirmation is defined as TWO CONSECUTIVE closes above or below these levels
By doing this, we take the emotion out of our trading and only allow there to be 2 possibilities.
Sell at our PPM
or
Sell at confirmation below the floor
By operating on the Law of Infinite Returns we buy, set our sells, and forget.
Everything else is NOISE.
Sell at our PPM
or
Sell at confirmation below the floor
By operating on the Law of Infinite Returns we buy, set our sells, and forget.
Everything else is NOISE.
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