How Watching Price Action Helped One Trader Avoid Big Losses
12/19/2008 11:15 am EST
Many traders who are also instructors and authors love to highlight their winning trades after the fact. However, the most credible traders are those who also share their losers so that you can learn what happened. One of the signs of a true trader is admitting mistakes quickly and taking action to avoid large losses. In this video, trader and author Brian Shannon shows how he bought the QLD and the reasons behind the trade. While managing the trade, Brian sees price action that becomes worrisome and then takes steps to scale out, take a small loss quickly, and then move on. An excellent lesson on how to properly manage a trade from start to finish.
The chart below also shows the entry and exit points.
Show Me A Losing Trade from brian shannon on Vimeo.