You know that to succeed in the world of stock trading, you need to know when the price will go up or down, right? You know that you can't just jump in here or there and expect to be profitable. This you know. But most likely you are searching for that perfect trade setup. You want that fool proof method of selecting trades.
Well, I'm here to tell you... that you have not found it yet.
Currency Trading
And you never will.
There is a much better way to approach trading. Build a toolbox. No, not a physical toolbox, but a collection of winning trading methods. No one method is always applicable. You can't always just find on trade set up. You need more than one. The flag pattern is a good pattern. Used properly it will make you money.
It's easy to recognize. You'll see it like this. The market has just made a run up. Then there is a small period where the market comes back down a little. The daily bars are smaller. And they are collectively form a squarish shape. This looks like a flag on the "pole" of the recent run up in price.
You trade it by simply placing a limit order above the flag. When the price breaks the flag, then you are ready to make money. The trend has resumed. Ride it on up. Place your stop at the base of the "flag". Put it just underneath the flag formation.
That's one of the great things of this. You can put a really tight stop in place, with a large profit potential.
Stock Trading - Making Money Trading the Flag Pattern
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