HT System Rules: Listen to the Market- 1

I want to share some rules that we apply to our trading on a daily basis:

1. Don't tell the market what to do, you mean nothing to it


2. Adjust yourself to changes in the market, the market will not adjust to you


3. Follow what the market is doing, simple as that


4. Consider any pullbacks in price as pullbacks, not reversals


5. These pullbacks in price are considered opportunities


6. Its up to you to intelligently apply the entry and money management rules in order to capitalize on the opportunities presented


7. When a reversal occurs, you will know it (based on our rules)


8. Be patient, wait for high quality setups


9. Don't be greedy, nobody ever lost money taking profits

I wanted to show you a trade that I am in in which I adjusted to a change in market conditions. The recent trend in after-hours was up, we waited for our reversal confirmation prior to entering the short position. We never attempt to catch exact tops and exact bottoms, rather we wait for our A) pullback entry confirmation or B) trend reversal confirmation. We stick to money management rules and attempt to adjust to changes in the market quickly.

This chart shows the steady uptrend we were in, the trend reversal confirmation, and the short entry signal that we took. We will stay in the position until A) we meet target or B) the trade becomes invalidated, which we'll either force the fill or get stopped out.



We entered short at 2257 upon the short confirmation and have a 10 point target on this trade (We currently have an unrealized profit of 8 points). As mentioned above, we will either get the target filled or exit the position once the trade becomes invalidated.

HT