≈ Beware of darkness, though. ≈

Last night we had a great event, the Swing Trading 101 Live Webinar. Coach Matt was on fire, the audience was on fire, Ricky Martin was on fire. We had a blast. No problem if you missed it, here’s the recording.

We all know rules and execution can make the Four Horsemen of the Trading Apocalypse look like teddy bears. Students who attended the webinar have learned how to apply the rules like a PRO. But there is one problem, presented under the Chart of the Day section.

• What are the chances that the patterns do not repeat themselves?
• Can the sequence end in a circle? Yes.
• Can the sequence end in a triangle? Yes.
• Can the sequence end in a shape that was not expected at all? Yes.

The future is opaque so we don’t know what is going to happen. Future’s doors are always opened to the unknown unknowns, things we don’t know we don’t know, as so wisely explained by Donald Rumsfeld.

What can we do in situations like this? What should be our first line of defense against the unknown unknowns?

Position sizing.

You have some nice chart reading skills. Last night, you’ve learned Matt’s SET rules and we know you will apply them with discipline and confidence. But if you have a $2,000 account and you put the $2,000 into one position you are done.

That’s when you thought you’ve defeated the Four Horsemen, but they are back again.

…

“Watch out now, take care
Beware of the thoughts that linger
Winding up inside your head”

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Chart of the Day

Anything can happen

Last night, Coach Matt wisely stated that we don’t move the markets, we follow them. With that said, it’s not up to us to determine the probabilities of the sequence ending up in a circle, in a triangle or in an unexpected shape. You can argue that there is a 50% or probability that it will end either in a circle or in a triangle due to the past repeating itself over and over again. But what are the probabilities of the sequence ending up in an arrow, a shape that has not occurred in the past?

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Video of the day

Position Size in Trading

In this video coach Gino Poore explains what position size is and why it’s so important.

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Today’s line up

Rookie Corner

The Breakthrough Part V

Just like a NASA countdown we are waiting patiently for lift off or actually putting this strategy into play. As Ipromised last week we are going to go into the market and see if we can’t find a candidate that will fit our needs for this trade and then throw that trade on in a paper account and follow it along to see how this great trade really plays out.

Traders Lounge 11PM EST

Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.

Cashflow Club 8:30PM EST

Held every Thursday before Friday’s option contract expirations, this show helps you perfect your favorite cashflow strategies.

Swing Trading 101 Live Webinar Replay

If you missed last night’s webinar where Coach Matt talked about the art of the swing trade or would like to watch it again, click the link below.

Halftime Report 12:30PM EST

The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.

Market Recap

The Market Recap is designed to give you a quick overview of the day that was. While brief, this report is designed to cover all of the major events that drove the markets that day and help you plan for the trading day ahead.

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