A full cycle of the profitable trade

A full cycle of the profitable trade
  • Trend reversal breakout
  • Complex pattern breakout
  • Climax run up
  • Selling off

That's my personal understanding so far.

When the full cycle is not developed as expected, cut loss quickly is a key !!!

Not all trend reversal is 100% for sure !

Not all complex pattern is 100% broken out !

What we need to do is to patiently wait for the full cycle of the profitable trade to be developed, as a observer !!! Only when buying signal shows, then buy ! Only when selling signal shows, then sell !

The most powerful trade is the complex pattern breakout, its advantages:

  • Expectable profit
  • Expectable loss
  • The time cost for the trade is low

The key is to know where the stock is during the full cycle ! Of course, the patience is another important key. We need to wait for the right time to get in as well as the right time to get out !

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