In life, there are few absolutes while in trading there are none. If you accept that premise, then it follows that the best trades are those trades where the highest opportunity for success is paired with the greatest reward versus risk taken. That is the Holy Grail of trading. The best opportunities are expressed as probabilities, not certainties. Understanding those probabilities across the varied and numerous trading possibilities is what separates this book from all others.
Just like trends, trade set-ups are not created equally. There are good ones and bad ones, great ones and average ones. You should seek the great ones and avoid the rest. This book reduces the complexities surrounding trade set-ups so that you may do just that.
The great trade set-ups are not as hard to find as you might think, but discovering them requires a roadmap—a set of characteristics that, when present, magnetizes the trader to those trade set-ups having high probabilities for success. Once recognized, all that remains is to develop the trading plan and to exploit the opportunity that has presented itself. Sounds simple enough, right?
Much has been written about trading plans, trade execution, and management, and though these concepts are incorporated throughout the book, the real focus is on trade set-ups. What are great trade set-ups? How are they found? What are their characteristics? How can a trader identify and make those trades having the greatest probability for success? That ...