Free Stocks, Futures, and Options Magazine

Lionking

"Stocks, Futures, and Options Magazine" is a free magazine available online (see link below) or in paper (by subscription). From time to time, there are a few very good articles for frogs. To list some in current issue, "Drilliing Down the timeframe" extended Dr. Alexander Elder’s triple-screen methodology, which I think it's vital for trading. "Chandelier Stop" introduced a exit method for locking profit. etc. It's 100 page magazine, and it's free.

Finally, I want to make it clear, I have nothing to do this magazine. It's FYI only.

Enjoy reading!

http://www.sfomag.com/Default.aspx

Drilling Down the Timeframes

As with other trend-following strategies, this trading approach thrives in trending conditions and avoids choppy markets. Because currencies are well known for being highly trending by nature, multiple timeframe trading is well-suited to the forex market. Of course, this is not to say that currencies are always trending, as they most certainly are not. But the instances where one may find a currency pair in trending mode, whether bullish or bearish, are relatively frequent.

The method I discuss here is based in part on Dr. Alexander Elder’s triple-screen methodology and has withstood the test of time. It is equally well-suited to being traded on a manual, discretionary basis as it is in the form of an automated system strategy. Either way, traders can make the rules as flexible or as rigid as they need.

The key concept behind the multiple timeframe approach is that an intelligent trader should view the market from different angles to understand and apply the critical strategic elements of trend, retracement and entry. The primary objective of multiple timeframe trading is to enter a strong trend at the most opportune time and price: after a minor countertrend retracement ends but before price breaks out to resume in the direction of the trend.

Customize Your Exit Strategy with a Chandelier Stop

An exit plan is crucial for all traders and investors, regardless of their trading timeframes. This point has been driven home recently as buy-and-hold investors have watched years of profits disappear in the current bear market.

Typically, a trade setup should have a specific companion exit strategy. For instance, a trader focusing on Fibonacci sequences may prefer to exit at a Fibonacci extension. Another trader may have a fixed target based on a percentage gain, or a trader following a trend may simply forgo setting a target and employ a trailing stop. A trader could also use option strategies in lieu of simple buys or sells in order to take profits or protect positions. The important thing to note is that a trader should have a plan for both exiting a failed trade and locking in profits once he or she earns them.

One volatility exit is the chandelier exit. This is a method that increases the stop along with a stock’s price while adjusting for a stock’s inherent and unique volatility. This strategy works across several timeframes;