WORKING STRUCTURE :-
Trading through a naked chart is a simplest of approach but unless a price is put into a workable structure at least for a beginner traders it will be far more difficult if not outright impossible to understand what prices are doing, why and were price has taken support and facing resistance and what are the probabilities of respecting that particular support and resistance in future, once structure is defined trader know what to expect though there is no certainty only probability. "Alan Greenspan" once said "I am happy that i am right 70% of the time", the man who is at zenith, make the rules and runs the game stating that he happy to be right 70% of the time then there is something wrong with a trader who is not happy after making 10% return per month on its capital. Al brooks says in any given trade there is 60% to 40% chance of success, If i take a long max probability of winning is 60% and minimum is 40% remaining probability goes to trader who has sold me the contract, When trader realize that nothing is 100% in trading he is automatically force to follow a MONEY MANAGEMENT because now he knows that the trader who took his opposite trade also have a probability to win. I have cut down that probability even more to 55% to 45%
Trading through a naked chart is a simplest of approach but unless a price is put into a workable structure at least for a beginner traders it will be far more difficult if not outright impossible to understand what prices are doing, why and were price has taken support and facing resistance and what are the probabilities of respecting that particular support and resistance in future, once structure is defined trader know what to expect though there is no certainty only probability. "Alan Greenspan" once said "I am happy that i am right 70% of the time", the man who is at zenith, make the rules and runs the game stating that he happy to be right 70% of the time then there is something wrong with a trader who is not happy after making 10% return per month on its capital. Al brooks says in any given trade there is 60% to 40% chance of success, If i take a long max probability of winning is 60% and minimum is 40% remaining probability goes to trader who has sold me the contract, When trader realize that nothing is 100% in trading he is automatically force to follow a MONEY MANAGEMENT because now he knows that the trader who took his opposite trade also have a probability to win. I have cut down that probability even more to 55% to 45%
