Saturday, February 21, 2009

Section 3

Section 3


Bearish Reversal System Case Studies


This is the system that I played most, the holding period is shorter and
the profits are quicker. However, since the returns are greater and so
are the risks because it involved the purchase of a straight put which
is exposed to Time Decay and the Implied Volatility of the option.
You must enforce strict risk management rules to protect and to
preserve your capital as top priority.

I have been using and have taught my students to use conditional
orders to minimize trading emotions and not to miss out on any
trading opportunities that are available.

Conditional orders reduces emotional trading

A conditional order is a type of order that will be submitted or canceled
if set criteria are met, which are set by the trader before entering the
order. There is no doubt that emotions can be your worst enemy when
you trade. Conditional order can help to reduce stress and emotions
while trading.

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