Ever wondered do I let my profits run or do I take profit quickly? Watch the video below and gain some insight as to when to do both. I think of it as running for a touchdown. If there is nobody in the way, haul your buns into the endzone. But it you’re looking at a massive linebacker in front of you with an 8′ wing span, you better take what you can get. It’s the same in the markets and it’s the same in the market every single day of every day you’ll trade for the rest of your trading life because that’s how the market works. If you’re buying into strong selling you are going to lose if you don’t take profits quickly; and if you are selling into strong buying then it will be the same result. On the contrary, if there was strong buying way beneath your entry – well run it on down and in!
Now how do we quantify strong buying or strong selling? If we can determine that with any degree of accuracy then we can make wise trading decisions day in and day out. Watch the video below for some great tips and useful instruction. The specifics of identifying these areas will be left for another video. The key now, is to notice what price does when it hits one of these zones.
Here’s the video: