Trading Quotes

Use daily charts to identify the overall trend and then to use the hourly charts to determine specific entry levels. [2009] - Kathy Lien

Moving average crossovers are notorious for false trend reversal signals. [2009] - Robert C. Miner

All price-based indicators represent about the same thing: the rate-of-change or how fast the price trend is moving. [2009] - Robert C. Miner

Price and momentum do not always trend together. Momentum indicators represent momentum trends, not price trends. [2009] - Robert C. Miner

A good indicator with the right lookback period will usually trend in the direction of price and reverse within a very few bars of the price reversal. [2009] - Robert C. Miner

If the decline is a correction, the market should not decline below the swing low and should eventually continue the bull trend to a new high. This is very simple but valuable information. [2009] - Robert C. Miner

Internal retracements are less than 100% and are primarily used to identify the price target to complete a correction. The ratios used for internal retracements are .382, .50, .618, and .786. Most corrections in every actively traded market and time frame end at or very near one of the four key retracements. [2009] - Robert C. Miner

Stops are always placed at the exact price that will void the setup. That’s the key to stops. [2009] - Robert C. Miner

Once the conditions are in place for a reversal and following the lower time frame momentum reversal, trail the buy-stop or sell-stop to enter the trade one tick above the high or below the low of the last completed bar. Place the initial protective stop one tick beyond the swing high or low made prior to entry. The entry will not always be executed on the next bar. It may take several bars before the trailing one-bar-high or low is taken out and the trade executed. [2009] - Robert C. Miner

We don’t determine the entry price, stop price, or initial capital exposure. The market does so by the range of bars it is making. We don’t control the potential risk of the setup. We do control whether to accept the risk or not, and we do control the position size. [2009] - Robert C. Miner

If you do not have the patience and discipline to wait for conditions with a high probability outcome according to your trade plan, you are not a trader. [2009] - Robert C. Miner

Successful traders always have a relatively close stop. Long-term successful traders usually have more losers than winners. If you get good at trading, you will have around a 30 to 40% win percentage. The losses on losing trades are relatively small and profits on winning trades are relatively large. [2009] - Robert C. Miner

Three percent maximum capital exposure on any one trade and 6% maximum exposure on all open trades is the accepted standard. A maximum monthly loss must be no more than 10 percent. If closed trades have resulted in a 10% drawdown to the account in less than a month, stop trading for the balance of the month. [2009] - Robert C. Miner

Most professional traders don’t pay much attention to a risk/reward ratio. They focus on identifying optimal trade setups, good trade execution, and good trade management through the trade exit. If the focus is on these positive factors, closed profitable trades will usually be several times the initial capital exposure. [2009] - Robert C. Miner

Always let the market take you out of the trade with a trailing stop by moving against the trade direction. Never exit at a predetermined price target. [2009] - Robert C. Miner

The exit strategy should be based on the same market conditions that determined the conditions to identify the trade entry in the first place. If the dual time frame momentum position was a key factor to enter a trade in the direction of the larger time frame trend, a dual time frame momentum position should be a key factor in the exit strategy. [2009] - Robert C. Miner

As each new bar is made, whether a weekly or intraday time frame, new information is available. As the market structure (pattern) develops, it may provide important clues to the position of the trend and where a stop should be adjusted. Price targets will often be adjusted depending on the pivot highs and lows made as a trend develops. [2009] - Robert C. Miner

Trading is a business like every other business. You have to gain knowledge and experience and constantly make decisions. You can never eliminate the decision-making process by rules, systems or any software if you want to succeed in the business. [2009] - Robert C. Miner

One of the major reasons for this lack of success is trailing a stop too close to the market and getting stopped out of a trade well before any conditions have manifested to complete the trend. Unless the higher time frame momentum has reached the position typical for a momentum reversal, the assumption is the trend is not in a position to end. [2009] - Robert C. Miner

We can use the weekly and daily data for the setup conditions and the 60m data for trade execution and management. For an even higher probability trade position, the two higher time frames’ momentum should be in the same position. Using two higher time frames will always result in fewer trades but also should result in a higher percentage of successful trades. [2009] - Robert C. Miner