文档介绍：UFFICIO ANALISI ICA
Meeting SellaAdvice Trading
Torino, 12 giugno 2004
UFFICIO ANALISI ICA
OK,
LET’S PRACTISE WITH TRADING
FIB30:
HOW TO DEAL WITH IT
UFFICIO ANALISI ICA
But, first, have a look to some
“MONEY MANAGEMENT” RULES
The trend is your friend: never fight the trend
Do not “average”. Never have loyalty to a position. Bad trades should not e long term “investments”
Plan your trade, trade your plan. Predetermine your
exit points, . STOP-LOSS, before getting into a trade
STOP TRAILING: the best way to let your profits run
UFFICIO ANALISI ICA
MONEY MANAGEMENT RULES
Avoid thin markets; avoid high volatility (if you can)
Identify and eliminate stress. Keep FEAR, GREED and HOPE under control
Never risk more than 1% or 2% of your capital on any trade. Never hold large position if you can’t hedge them
Save money for a rainy day
Do not overtrade
DISCIPLINE. It’s a prerequisite to maintain effective risk control. You need discipline to apply your method and your trading plan
UFFICIO ANALISI ICA
MONEY MANAGEMENT RULES
Live long enough and you will eventually be wrong about everything...
The only sure thing in the long run is that we all be dead...
... going to dismiss all this stuff
as obvious clichés?
Indeed, few things
are easier to ignore than
trading advice...
Consider for example the rule “Do Not Average”, . “Cut your losses short”.
How many times did you ignore it?
What happened then?
UFFICIO ANALISI ICA
FIB30: daily chart
UFFICIO ANALISI ICA
FIB30: intraday chart
June, 8th
June, 9th
UFFICIO ANALISI ICA
Good friends for a Fib30 trader: Pivot Points
A projection of the two market dimensions: Volatility & Directionality
Second Resistance = Pivot + (H-L)
First Resistance = (2 * Pivot) - L
Pivot Point = (H + L + C) / 3
First Support = (2 * Pivot) - H
Second Support = Pivot –(H-L)
UFFICIO ANALISI ICA
Good friends for a Fib30 trader: Pivot Points - example
FIB 30 – 09 JUN 2003
what happened
Open:
High:
Low