TRADERS WHO HOPE to keep a trading business viable will definitely need to intimately acquaint themselves with the notion of natural support and resistance and the role it plays in defining the parameters of their trading activities. Over the years, I have taught thousands of people how to trade. In many cases, I am able to predict who will not be in business long based entirely on the context of a single conversation. It usually goes something like this:
adrian: So tell me a little about how you are defining your acceptable risk on any given trade.
trader: It’s pretty straightforward. I never risk more than two per cent of my account on a single position.
adrian: So you adjust your position size ...