Managing the Trade
In This Chapter
Creating trading rules: The five-step plan
Knowing when to take the money and run
Keeping losses under control
Finding out how to adjust positions
In technical trading, you use indicators that help you identify what the price is doing — trending, going sideways, making a peak or a bottom, and so on. Indicators give you useful information about price dynamics, but it’s up to you to build trading rules around them. Indicators are about price changes. Trading rules are about you and your money.
In this chapter, I talk about developing trading rules that match up with your indicator skills, your appetite for risk, and your choice of time frame. Special emphasis is on stop-loss rules — don’t leave home without one.