Disk 4.1 Trade Entry

Bear flag entry & stop loss

Disk 4 deals with the trade entry point, then managing your profits and finally risk management.

One of the major advantages of trading flags is that the trade entry points are very clear as the price breaks through the support or resistance lines of the flag.

These entry points together with the related stop loss points are clearly illustrated with various examples for both bull and bear flags.

Risk

Guy shows you how to calculate the amount of risk involved as a percentage of your trading fund. This is important as it can dictate the size of your trade.

The difference between your practical and theoretical risk is also covered as this can affect the trading limits allowed to you if you choose to trade through a broker.

As remarked, identifying trade entry points with flag patterns is pretty self evident.

What comes across strongly is Guys insistence on his students not over extending themselves.

Summary

Clear instructions on how and where to enter a trade and place stops together with illustrations of how to calculate risk.