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Saturday, July 25, 2009

The 11 seconds Rule

I enter trades with the expectation that price will move in my direction within1 to 10 seconds.If price doesn’t cooperate within this time period, some aspect of the trade may be wrong.

my approach, if this occurs, is to exit the trade with small profit, no loss or average per trade loss.

The point of this maneuvering is simple - we are protecting our capital. Our first and foremost goal is to protect our capital, period. When we are at a break-even or better position with the trade, we can begin to more actively work the trade for profits.

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