Hubert Senters here.
Let’s take a simple concept and break it down for you so we’ve got GWW as a break away. It is above the cloud and it’s popping to the high side and then boom.
Yesterday I had a gap up and today, can’t continue that. So in the first day I tend to let them just trade because I don’t want to mess with them on that first initial gap up or gap down situation.
Then the next day I’ll either put my lines on manually or just do it all myself or I’ll have a piece of software do the hard work for me. So in this case we’ve got a little piece of software which is called an indicator doing the mathematical model for me and I can obviously see yesterday it had a gap up.
I won’t going to mess with that so it’s not a big deal. Wake up this morning and go OK. Obviously, I’m still in a massive uptrend because everything is green here and right off the bat I’ve got a blue dot with green above and below. Go on. Go ahead and get long. You should be fine.
So I can go long here and there’s a couple stop-loss I can use. I can use a big wide stop off and when I hold this thing for several weeks or months if I’m going to hold this for less than a month or so I can use this trading line. So trailing stop one loose medium or so got loose medium or tight.
So if I’m using loose basically I’m loose going to make a little bit because there’s a trailing stop-loss. If I’m using the medium I can go long here trailing the stop-loss, boom! Right there that’s a potential exit.
I can also exit on this little yellow dot here and use that slow, medium fast or fast, medium, slow. I can also do a quick scalp trade which I don’t do these much but you could you can go long, short, long, short or long, sell, long, sell.
It’s better for me and I tend to make more money when I go long trailing stop-loss either medium or slow the fast ones just going to work me out of the trade too much. I am going to stop that here, I am going to get mad and we’ll have to get back in here and we’ll trail and then we get stop that here again and, you know, so you just got to be careful with that.
So pick your point up or down pick your entry and then pick fast trailing stop-loss medium trailing stop-loss or slow stop-loss.
Mark Helweg and I are going to be doing a special webinar tomorrow at 12PM Eastern “The Simple Hedge Fund Strategy.” We will walk you through how to use this thing, advantages, disadvantages, good, bad warts and all. So I look forward to seeing you tomorrow at 12PM Eastern, Friday January 26th.
Good luck. Hope it helps. And I’ll see you on the next video.
Hubert.
