If the market starts to move parabolically or makes a range-expansion move, take profits on your entire position. This is very likely a climax! –Larry Connors and Linda Bradford Raschke, from Street Smarts (1995, M. Gordon Publishing Group, Malibu, Calif.).
Immediately look to scale out of your trade as the market moves in your direction. By taking some of the trade off, you are decreasing your risk and locking in profits. If you are trading on a one-contract basis, as you should if you are beginner, move yo
Before you trade market lore, ask yourself, Why isnt everyone rich if something so simple is true? In order to gain an edge over some of the smartest people in the world, you cannot trade generalities. You must step outside the box and think differently.–Larry Connors, from Connors on Advanced
There are two times traders use hope, and both times it means they are doing something wrong.When a trader enters a position and hopes it moves in his or her favor, he or she obviously does not have a winning trading plan.The second time hope comes into play is when a trade is entered and it immedia
It is important to initially trade a new concept or strategy on paper. Only by seeing a pattern over and over again will you truly feel comfortable with it. You must believe in its ability to repeat itself. If a pattern doesnt make sense to you, dont trade it. If you dont have 100 percen
The single most important trading secret is this: Learn to listen to the markets and do not impose your own will upon them. –Larry Connors and Linda Bradford-Raschke, from Street Smarts (1995, M. Gordon Publishing Group, Malibu, Calif.).
We believe that in order to prosper at the trading game one must develop a “survival of the fittest” mindset. We believe the four most important components of that mindset are commitment, a daily approach that is different from the herd, an unshakable belief system, and guts.–Larry Co
If the market goes dull and quiet after you enter a trade and makes no progress in the direction of your entry, do not wait until your stop is hit. Just get out! Seek a more active market or better trading opportunity. –Larry Connors and Linda Bradford Raschke, from Street Smarts (1995, M. Gordon
We view losses the same way we view cancer. A small cancer can be removed and the patient will most likely live. A small cancer allowed to grow into a large cancer will eventually kill the patient. A small loss removed early will most likely allow the trader to trade again. A small loss allowed to
While gaps can offer excellent trading opportunities, it’s often difficult to know (except in hindsight) if one is a runaway gap or an exhaustion gap, or some other kind of gap. One of the best filters for determining whether a gap will lead to a short-term runaway move is the ADX. If the AD