Trailing Stop, Stop Limit Order and Order Modifiers Trailing Stop Although widely used, some brokers don’t offer a trailing stop order. It is similar to a stop loss order, in that it becomes a market order to sell (for a long position) if the price goes down to it. The difference is that the trailing […]

Order Types There are many different types of trading orders, sometimes depending on the type of security you are trading, and although some brokers will not have them all, they should have the most frequently used ones. You will probably find yourself using just three or four types most of the time. If you place […]

Trading Tactics When it comes to entering the position, there are a number of ways we have looked at in previous modules, and here’s a summary of the main tactics. There is nothing special about them, they are simply ways that have been established on commonsense principles, and that seem to work the majority of […]

The Way You Think The way you think is the most important aspect of trading. There’s an old axiom which is still true, ‘Cut your losses and let your profits run’, which most traders know, but many find difficult to apply in practice. It is natural not to want to prove yourself wrong, and in […]

The Stop Loss is Supreme Trying to predict the market is a fundamental tendency, which most traders or investors do. Trying to predict the market. Caution is always the name of the game. The stop loss is supreme. As everyone knows, the market does not move in a straight line. It moves in waves. If […]

Money Guidelines Let’s start by going through some general guidelines that have worked over the years. After you get some experience, if you think you know better you can do something else, but these guidelines are designed to keep you out of trouble and in the trading game, so you ignore them at your peril. […]

Module 11 – Money Management and Computers Introduction Money management may be the most important skill you can learn for successful trading. How you view your trading account and how you determine how much to use on each trade is crucial to making a profit at trading. If you run out of money, then you […]

Corrections: Zigzags and Flats While the principles are clear and simple, the difficulties with the Elliott Wave Theory are in correctly identifying the various phases. The five wave move is not so difficult, but the correction is often hard to trace, as it tends to be less clearly defined. Three basic patterns of correction have […]

Module 9 – Elliott Waves and Cycles of Time Introduction Elliott Wave Theory has been around for decades. Ralph Nelson Elliott first used it in the 1930s, but it wasn’t until the 1970s that it was popularized in the book ‘Elliott Wave Principle’ which was written by Prechter and Frost. It builds directly onto the […]

Summary Oscillators show an extreme condition in the market – the price has gone too far, too fast. Oscillators can show when a trend is losing momentum. All oscillators have the same basic characteristics. An oscillator is a secondary indicator to confirm what you already suspect. Oscillators can give misleading signals, particularly at the beginning […]