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LEARNING

HOW TO DRAW CHANNELS

Selection of YouTube Videos To Study

General Trading Knowledge from Marty Schwartz, and Other Helpful Channel Drawing videos

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Danny Riley Published on Aug 18, 2013

Lessons from WALL STREET's Champion Day Trader

Pit Bull / Martin "Buzzy" Schwartz / A Market Wizard

What I learned from this guide helped me develop my trading style and adjust my rules to meet the goal.  You Can Not Go Broke Taking Profits.  

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Autopilot FX Money Published on Nov 21, 2015

Forex Boat Published on Apr 12, 2015

Sasha Evdakov Published on May 4, 2016

Joseph James Published on Apr 10, 2014

UKspreadbetting Published on Jun 25, 2017

THE FIVE OUTCOMES TO A TRADE!

Five Outcomes to A Trade

My mentor taught me the first four.  Marty Schwartz taught me the fifth one "Stay Neutral".   Close the trade at break even if the move you expected did not develop.  Losing control of a few trades can break your account, greatly affect your mental state and your ability to make proper decisions.

BE PATIENT, STUDY, PAPER TRADE UNTIL YOU HAVE CONSISTENT PROFITABLE RESULTS

Making money trading is feasible for many but trading is not for everybody. 

Take your time to learn, invest in your education time, effort and get the experience needed in various types of markets prior to putting your hard earned money at risk.  It is up to you which route you take.

STUDY TRENDS
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DRAW YOUR CHANNELS
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MANAGE YOUR TRADE
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CHANNEL BREAKDOWN Without blackFLAG FTS

Channel break down or channel break up provide awesome trading opportunities.  Learning to trade those breaks will make a huge difference in your trading performance.  The issue is when and where to enter.  You can always guess but if you are wrong and the market bounces against your position, you may end up bailing out at a loss.  Also, when guessing your entry point, you do not have a good location for your stop loss.  How big of a Stop Loss will you use? 

CHANNEL BREAKUP With blackFLAG FTS

In this example, you can follow the blackFLAG and see how it guides and assist the decision to enter a Long Trade vs. Guessing where to do it.

CHANNEL BREAK UP AND BACKTEST

Another important lesson of Trading Channels is the Backtest.  Breaks do happen and also, most of the time, they get tested at one point or another.  So, one must be prepared to take profits and allow the backtest to occur.  You may reenter at a later time.  Some traders enter at the break and hold on to the position during the backtest.  The backtest may be way deeper than the original entry causing the trader to close the position at a loss to then see price bounce in the original expected direction.

Sometimes the backtest fails to find support and the drop continues.  If you placed a stop when the trade was entered, you are then taken out at the maximum loss per your entry.  If you failed to place a stop and are not managing the trade, then your loss could be significant.  

Enjoy The Journey