Tuesday, May 22, 2012

Lamprell

UK stock Lamprell has fallen pretty hard following a trading update last week. Yet, the signs were there if you looked at the chart. There was a prolonged period of consolidation, a failed breakout to the upside, followed by a profitable short signal given prior to news being released - another case of price preceding news. All you are risking is 1-2% of your trading equity -  this trade currently shows a profit approximately 7 times what you should have risked in a matter of days.

Trend following requires almost no intellect. All you have to be able to do is control your risk, and act on any signals (entries and exits) that are given in accordance with your system parameters. And if you do that, then a profitable trade like this covers your controlled losses on your losing trades, and help generate your overall profits.

Remember that the codes for my system scans and chart set ups are fully disclosed in my e-book, and are fully covered as part of the 1-2-1 training.

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