• 3 months ago
Gann Class
Transcript
00:00It's quite obvious that the timing date has failed, I can use that, I just switch back
00:04into the old system which is buying on the pullbacks if it's in the uptrend.
00:10Selling the rallies on the downtrend, the same way as I would have, keeping in the direction
00:14of the original timing date.
00:17So this means that you can enter late in a move and still be going with the flow of the
00:21market because you recognize later perhaps that the timing date was at such and such
00:26a point.
00:27Well that doesn't stop you from trading because you just utilize the system from that point
00:32on to the next timing date and then on that timing date you close out.
00:40I can only give you ideas about stop losses because I don't know your personal circumstances
00:48but remember that a stop loss is designed so that you don't go broke or you don't lose
00:53so much money on a trade that you find it impossible to make a comeback.
00:59You want to keep these losses down.
01:03Your main criteria is how much risk you can take on any trade.
01:08I like 1 or 2% on a trade.
01:11I don't like to risk any more.
01:14I estimate stops from what kind of market I'm in at the present time.
01:21As a general outline, if a market's trending quite strongly I use a 3 day trailing stop.
01:27If the market is in a range I use a stop on the other side of the range plus a little
01:32bit extra and if I get whipped I actually re-enter again on one of the patterns like
01:38my pattern 1 or my pattern 2.
01:41If the market's been trending for a while and I've got a new add-on position, once that
01:46position's in the money I'll often put a stop at entry.