The most important POINT for Entries:
Know exactly where your exit should be in case it turns around. Note: This is initial point of entry. This exit would usually be with a negative balance. This is what we call rent.
Moreover this exit point must be less than what you are willing to risk. e.g if you do money management on 15 or 20 pips. That initial exit point must be less than 10pips. This is a guide for our pair EUR/USD other pairs might behave a bit differently.
The most important POINT for Exits:
We better Call it Profit Taking Techniques. Do not confuse this with exit discussed above.
Exiting (with profit) is always an executive decision.
But dont worry, if you dont want to burden yourself with making decision with every candle choose just 1 exit strategy. let it be either of the 3 as below.
How to Avoid 4th Wave Trading
Revisited: Sat, 28.5.11
Always Trade from a saddle point. In attempt to trade the 5th wave always be careful with the AIMS level on the left. e.g. if peak of third is far from your entry make entry and be watchful how it reacts when it reaches the peak. If its too near consider taking trade above the peak of wave 3.
Follow M5 alligator. If M1 AO peaks on one side and coming back to ZL check price whether its reach green/red/blue lines on M5. Also check how to behaves when it touches the lines. If price was to go into 4th wave on M5 it could change things etc.
I know this is tricky but it becomes clear after some time. Just dont give up.
3 Simple Rules and Visualisation
Download Print and Display on your wall or next to your computer. Read it slowly and thoroughly everyday before trading and after taking a break. Visualise your trades using the rules over and over. Trust me you'll forget within a week so read it everyday. Visualise really good trades over and over in your mind. Set aside at least 7 minutes before trading session for this process. Visualise in your mind how you spot a saddle point, then bracket the market each side. Visualise how it kicks in and then forms an AIMS Level, (perhaps add on, in fact add on 10 times every 10 pips) make a 100 pips 3-4 times per session. This advice could be worth a few extra zeros to you in the coming months.
Image remvoed - Rules are here now : Click on this Link