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Learning From Losses

Winners learn more from losses than from wins. When a profit is taken, there may be little room for improvement. When a loss is taken, a trader's self-discipline and self-control are the first things to be examined. The second aspect of studying a loss is to see how the actual price action caused the loss. Was there a trend reversal; an unexpected gap? Most beginning traders sustain losses du...

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Is that Breakout Real?

How can you tell if the breakout from consolidation is real or not? Trading rectangular block, i.e. ledges, or sideways chart patterns is a solid market trading approach so long as the breakout is not a false breakout. A legitimate breakout should not retrace to 50% of the block pattern range, as the most profitable trades never retrace below the breakout price. If the low of the daily breakout ba...

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Derivative transactions, including futures, are complex and carry a high degree of risk. They are intended for sophisticated investors and are not suitable for everyone. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results, and all of which can adversely affect actual trading results. For more information, see the Risk Disclosure Statement for Futures and Options.