Trading Quotes

The trader who masters all three—-technical analysis, fundamental analysis, and risk management-—is truly a “triple threat” trader. [2007] - Ed Ponsi

There are three basic types of trading conditions: 1. Trending 2. Range-bound 3. Consolidating. [2007] - Ed Ponsi

The ADX indicator’s giving a reading above 35 and rising would be an indication of a strongly trending market. [2007] - Ed Ponsi

If we have determined that we are in an uptrend on the daily chart, we can go long if the price falls to a level of support on the hourly chart. Or we can go long if an oscillator, such as RSI(calculated using 14 periods), indicates that the pair is oversold on the hourly chart (I recommend waiting for the oscillator to drop from the over- bought level and into neutral territory). Enter long with your stop below the area of support. An active day trader can use a four-hour chart as the longer-term chart and a 15-minute chart as the shorter-term chart. [2007] - Ed Ponsi

Breakouts that run in the opposite direction of the trend have a greater likelihood of failure. [2007] - Ed Ponsi

If the reason for entering the trade is no longer valid, then the trade itself is no longer valid. If the price is rushing headlong toward your support or resistance level, get out of the way. [2007] - Ed Ponsi

Achieving a goal of just 1 percent per month would put you well ahead of most traders, since the majority of traders lose money. While a goal of 2 percent per month may not sound awe inspiring, if we can achieve it consistently, the annual gain will be just shy of 27 percent—and you’ll have outperformed most mutual funds and hedge funds. If you have successfully achieved your modest goal for three months in a row, raise the goal to the next plateau—from a 1 percent monthly goal to 2 percent, or from 2 percent to 3 percent, and so on. By the time you work your way up to consistent monthly returns of 3 percent and then 4 percent, you’ll be putting up respectable numbers, and you’ll have gained the benefit of months of experience. If you can achieve consistent monthly gains of 5 percent or 6 percent, you will have truly joined the elite. [2007] - Ed Ponsi

If you are consistently failing to meet your goals, they may be too aggressive. Try for an easier target. If things get really tough, cease live trading and switch to a demo account until you regain your footing. [2007] - Ed Ponsi

We make the playing field larger by using wider exits and stops, by using longer time frames, and by trying for larger gains. [2007] - Ed Ponsi

An important factor of trading success lies in the matching of Method with the trader’s own personality and trading style.  [2007] - Grace Cheng

If you are unsure of a trade, stay out. It is better to miss an opportunity than to have a loss. [2007] - Grace Cheng

A primary trend lasts the longest period of time, and its lifespan may range between eight months and two years. An intermediate trend could last from a month to as long as eight months. A short-term trend can last for a few days to as long as a month. Day traders are concerned with spotting and identifying short-term trends. [2007] - Grace Cheng

It is essential for day traders to know the trend direction on the daily chart as this enables them to trade knowing the overall technical picture. [2007] - Grace Cheng

False breakouts are more common than successful breakouts. Successful breakouts must be accompanied with a strong surge of momentum in the direction of the price breakout. [2007] - Grace Cheng

To get some clues as to whether a trend could be reversing, you should scrutinise the price charts, and look out for certain reversal chart patterns that tend to serve as harbingers of a trend change. Examples of such patterns include the head-and-shoulders, double top/bottom, triple top/bottom and so on. If you do spot these formations in your charts especially in the daily or weekly chart, there is a high chance that a reversal may be in the works, and that you should get ready for trading a breakout. [2007] - Grace Cheng

The most useful way of applying the RSI is through its divergence signals. [2007] - Grace Cheng

Decreased volatility is detected when a moving average moves sideways, and looks like a smooth horizontal line. [2007] - Grace Cheng

Most markets trend no more than a third of the time. [2007] - Mark Galant

One of the keys to successful trading is to cut losing positions quickly, and let winning positions run. A trailing stop-loss order allows you to do just that. [2007] - Mark Galant

A one-cancels-the-other order (more commonly referred to as an OCO order) is a stop-loss order paired with a take-profit order. An OCO order is the ultimate insurance policy for any open position. [2007] - Mark Galant