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JWBK244-Miner

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August 12, 2008

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Printer: Yet to come

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TRADING THE PLAN

FIGURE 8.8 Second Unit Trade Management

Robert’s Follow-Up This trade is a great example of how you can make a profit even when dead wrong about the larger time frame trend by using two units and making decisions based on the market position as the trend develops. With the bearish weekly and daily momentum, Jagir anticipated a short trade should have a long way to go. He correctly identified a probable ABC corrective high as of September 24 and entered a short position very close to the extreme high on the 60m trailing 1BL entry strategy. He took a quick but small profit on half the position at a minor retracement in the event the decline was only a minor correction and not the beginning of a bear trend. He did not adjust the stop on the second unit until the GBP had declined to the major 61.8 percent retracement and the 60m momentum was oversold. He still kept the stop fairly far from the market at a minor swing high. This is another example of how successful traders keep the stop wide on most trades and don’t adjust it until there is a technical reason to do so. On September 27, Jagir changed strategy. The GBP had made a potential minor ABC decline and traded back above the potential W.A low. A confirmed three-wave decline implies a correction, which implies the advance should continue. Rather than hold the

Profile for ERIC  Hunt

(wiley trading) robert c miner high probability trading strategies entry to exit tactics for the for  

(wiley trading) robert c miner high probability trading strategies entry to exit tactics for the for  

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