Hubert Senters here.
Let’s take a look at the markets. The longer you trade, the more information that you’ll be putting in your trading log book or your journal, whatever you want to call it. A document that you keep notes on so that you can return to so that you can trade better in the future.
So one of the things is you’ll see this a lot where you’ve got and up move one, two, three, four and then pull back one, two, three, four and then pull back. It will be a lot of times the market will move in 3, 6, 9 or going 3, 6, or 7. And also a luck if you have a huge run up like Monday through Thursday, Friday or pullback and that’s what we’ve got here so.
When I did the video yesterday for the members I was like heads up we’re probably going to bounce tomorrow because we’ve had a bad week and it likes to recover at the end the week not go into the week really bad because you don’t want two solid days of anything that can happen.
And then Sunday and then Monday happened and then, you know, big sell off so this is pretty normal. It’s pretty predictable. And as you can see this week so this is Friday right there so The Dow trades 23 hours a day so it’s already bouncing. So it’s Friday, Thursday, Wednesday, Tuesday, Monday.
Monday was slightly up but I mean it was a down move and then it finished up higher and you can see like there is one, two bounce, one two, three bounce. So the overall theme of bad week and then slightly recover on the Friday is a very normal occurrence and you should write it down in your trading long in order to keep notes so you’re like hey, we have a really bad week we’re probably going to bounce on that Friday.
Same thing if we have a huge run up from Monday through Thursday probably going to pull back slightly on Friday. Now, as long as this thing does not retrace 50 percent today then the downtrend is still going to be intact. So what you do is you take your Fibonacci and you just go like I’m going to go from let’s just start from this week’s drop from here to there a normal retracement would be right here to the $50 at $25,734 $25, 931 now magically not magically just MathAlly.
You can see that’s the actual turning line right there so that’s the zone that it needs to retrace to, to be like oh, this is just normal healthy and then just fall out of bed next week and sell off harder so keep that in mind.
Mark Helweg is going to be doing a special webinar on ‘’How to Trade Minnow Sized Risk to Target Whale Profits.’’ He’s going to talk to you about probability enhanced setups, locating price reversals, how you can be wrong more than your right and still potentially make a killing. It’s very important. A lot of people when they ask me on webinars what’s the success ratio of a particular set up.
It’s not a bad question it’s just the wrong question what you should be asking is what is the risk reward ratio? If I showed you something that worked 80 percent of the time but just consistently blew out your account wouldn’t really help you.
But if I showed you something that worked 40 percent of the time but the risk reward ratio was you were risking one to make $30. It’s going to be profitable over time so it’s really important that you understand the distinction. I’m going to LINK you to this page.
Good luck. Hope it helps. And I’ll see you on the next video.
Hubert.
