Cut your losing trades by half

by , 11 June 2018
Cut your losing trades by half
You know that with successful trading, comes inevitable losing trades.

But I've found many novice traders take far too many losing trades one after another. I'm talking about taking up to seven losing trades in a row, without banking one winner.

This means, something is going horribly wrong.

If you're in the same boat, then you're going to love this.

It couldn't be easier for ordinary people like you to start making money on the FIFA World Cup Soccer 2018
If you love soccer and like the idea of winning big amounts to small stakes, then you're going love this!
Every Friday evening I’ll be sending my readers simple, step-by-step instructions on what bets to place to reap the rewards.
How to cut your losers by half with the ATR
The Average True Range (ATR 14) shows you the average ranges between the High and Low prices of the day in any market over the past 14 days.
Let’s use Anglo American as an example...
The Average True Range (14) for Anglo American is currently at R8.59.
What this means is that over the past 14 days, Anglo’s share price has ranged R8.59 between its highest and lowest price.
Let’s take a look at the chart…

There are two observations, we can see, in this chart.
#1: Anglo has been on a strong uptrend since December 2017
#2: The ATR is at R8.59
So if the trend was up and traders bought Anglos how could they have lost money? It’s simple – they did not set their stop loss greater than the 14 day ATR.
Here’s what I mean:
If you bought Anglo at R291 and set your stop loss at R287. This is only R4 away from where you bought it. And with the ATR at R8.59, this means Anglo could move as low as R282.41... This would mean you could be stopped out and lose money!
So this is how the ATR can help you avoid losses.
But before you rush off and start applying the ATR to any share, there are 3 criteria a share must meet for my ATR strategy to work.
I call it my ATR Watchlist criteria
#1: The share must be a top company on the JSE
#2: The share must be in a strong uptrend
#3: The share must come down to go up
In the chart above, you can see that Anglo has been pulling back  in price from 22 March 2018 and is approaching the Black Trend Line.
This means we can now expect the next run up with the share.
Once all three criteria are met, you’ll add the ATR to the chart and put in your trading levels. 
Seven filthy secrets to get rich quick
Have you noticed how some people always seem to have more money than others? They don’t necessarily have better jobs. Nor do they always earn amazing salaries. They just have more money.
But where... How... Did they get it?
What’s their secret?
Well, I’ve just released my new book - Little book of Big Income  - 7 Filthy secret to get rich quick – In it you will discover how ordinary people can become extraordinarily wealthy just by applying some fairly simple techniques – techniques the rich use to get even richer. But the secret to how they do it will astound you – the rich don’t do anything special, they just do it in a very special way, as I’ll explain in my e-book.
I’m releasing 300 FREE copies starting today so if you want to reserve a copy of one of these 300 right now, simply claim your copy of Little book of Big Income here.
Anglo is lining up a strong buy level thanks to the ATR
You’ve now got a powerful trading strategy you can use to place your stop loss and cut your chance of taking a loss.
You can use this strategy on any top trading share.
But Anglo is one that is on my radar as we speak.
In fact, I have my entry, stop loss and take profit levels in place ready to send out to my Red Hot Storm Traders.
If you’d like to get in on this profitable opportunity, I urge you to join now
Always remember, “Wisdom yields Wealth”
Timon Rossolimos,
Managing editor, Red Hot Storm Trader
P.S: Time is ticking, and I need to send out this profit opportunity to your phone before it’s too late. Click here to receive this SMS…

Cut your losing trades by half
Rate this article    
Note: 5 of 1 vote

Have a trading or investing question? Click Here

Related articles

Related articles

Watch And Learn

Trending Topics