December 8, 2015

Fundamental Principals of F2G Trading


Fundamental Principals of F2G Trading

The current market price is the collective vote of all market participants and takes into account all information, and the majority vote wins, which leads to the market direction, which we join like a surfer on a wave

The market is always searching for support (institutional buying) or resistance (institutional selling)

Support and resistance are horizontal (price level) and diagonal (trendline) lines, and drawn from highs to highs and lows to lows (including opens and closes)

The more touches a support or resistance level has, the more important it is, while HTF sup/res is always more important than LTF sup/res

Support and resistance are broken only when price closes strongly beyond them, broken support becomes resistance, broken resistance becomes support

Buy at support, sell at resistance (or when something is wrong, eg. market can't quite reach sup/res)

Focus on singles, not home runs, add to winners/re-enter if flat if trade thesis is still correct

Identify simple chart patterns such as channels/flags, triangles, wedges, and double tops/bottoms, then plan your trade and trade your plan

Cut your losses fast or the market will force you to take an even bigger loss (if you're trapped, chances are that other people are trapped too, so it all comes down to who comes to their senses first)

Questions? Submit them below in comments sections, or send me a private email and I'll respond when I get the chance. Thanks for stopping by F2G!

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