This is a companion video to my "Trade Like a Pirate" article showing how the Long & Short tool can help you manage your "aRRR" - Your Reward-to-Risk Ratio. Whether you are trading a Company, a Currency, or Commodity, you want to Consistently trade your positions in terms of Risk and Reward for consistent results and to not "blow up your account" with a bad trade.
Ever since the invention of the Mutual Fund, then IRAs, or even going back to the ownership of individual stocks, the “common man” has been taught to “Buy and Hold” when it comes to their investments. Even today, investors are taught to put their hard earned dollars in a “lock box” and told to "let it grow"... We are told things like “Let time be on your side”…...
This is a key pivot level where Supply and Demand keep fighting.
Currently in a downtrend with decreasing RSI at each Pivot High.
What was strong demand (with 3 hits) is now penetrated and became Supply.
Go short on the retrace if price returns
RTY experienced an explosive move down from a pivot level which historically has been a favorite pivot point, once being Supply, then becoming demand, etc... Looks like we are currently in Supply mode.
Take the Short at supply if price has the strength to retrace
Expect 3:1 profit and if possible trail it from supply level to supply level as long as we...
ES is in an uptrend on the higher timeframe with positively correlated RSI - Higher Highs are producing higher RSIs allowing us to ride the trend. Take the retrace in a quality demand zone .
Target the opposing Supply Zone for a Set-and-Forget 3R profit or use a trailing stop if you will manage the trade actively.
One of the amazing things about trading the financial markets is that it is the only industry where we “common folk” have the potential to EXPONENTIALLY grow our income day after day, week after week, year after year.
All our lives, from opening up our first lemonade stand to landing our first job, we are taught to make LINEAR income: to exchange TIME for MONEY....
Socrates famously said “The unexamined life is not worth living.” Why do we do what we do, why do we feel the way we feel about something, or what is our purpose in life? These questions brought about generation after generation of journals, diaries, and random thoughts from some of our greatest thinkers from Socrates himself, to Jonathan Edwards in early America,...