TAILIEUCHUNG - Diary of a Professional Commodity Trader: Lessons from 21 Weeks of Real Trading_6

Tham khảo tài liệu 'diary of a professional commodity trader: lessons from 21 weeks of real trading_6', tài chính - ngân hàng, tài chính doanh nghiệp phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | Once a position has been established and the initial protective stop has been set there are a number of techniques used by the Factor Trading Plan to exit a trade. In nearly all cases trade profits are taken if a market reaches the target implied by the pattern that launched the trade. Stops are also advanced in the direction of the position using several methods including the Retest Failure Rule the Trailing Stop Rule and the Intervening Pattern Rule. Explanations and examples of these methods to move protective stops are found in Chapter 3. Trade Order Management Whereas trade risk management deals with the determination of the risks and leverage taken on any trade or combination of trades trade order management deals with the actual physical process of entering and exiting trades. My job as a trader is really nothing more than that of a glorified order placer. At its irreducible level trading is basically the process of entering orders. I have no control over what the markets do. The real challenge of trading is to identify the controllable factors and build into the trading process means to control what can be controlled. The markets will do what the markets will do whether I buy sell hold or do nothing. At the end of the day the only control I have is over the orders I enter. I will divide this section into trade order management on positions being considered for a new entry and trade order management on existing positions. Entering New Orders I review the weekly charts for about 30 different markets once each week usually late Friday afternoon or early Saturday morning. This review gives me a good idea of any new developments taking place in the markets and if there are any new potential trades on the horizon. The types of weekly chart patterns I want to trade take a very long time to develop. In fact there are only about two to three significant weekly chart patterns that qualify an individual market for a trade in any given calendar year. Finding more than

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