1.- Set the input level correctly
Horner says that in his first steps he tried to gather information on the short-term systems designed to enter the strong trends. That is, the 'trader' would only enter into well-established trends. The surprise was that this technique did not work at all. Since no one can spend 24 hours watching the screens to decide when to open a position, the expert suggests that it is best to calculate a mean.
Indeed. If, for example, you pass a (long) purchase operation, "average the latest four minimums and use that level as your new entry price." Conversely, if you pass a sell signal, "average the last four highs" and that will be your output level. This technique will not always allow you to enter the market, but it will give you a second chance.
2.- Do not place orders in round numbers
Banks often "clean" the market. Or put another way. You are the target of a game in which the banks are going against you. In fact, banks can see how orders pile up at some price levels. And here psychology comes into play, because banks know that individual traders often place their orders in round figures. For example, 1.2200 or 0.7100. And so, they know where the dough is and how and when to clean it. For this reason, Horner suggests placing orders at unconventional levels. "We must position before or after the mass but not with it," he explains. In fact, if you place your orders in psychological numbers or round numbers, you will be "getting a shot".
3.- Conditional orders
As soon as you step into position, immediately open two very specific orders. First, a 'stop' protection and the other a limited order of value for your profit target. But it must be done with conditioned UAA orders; That is, one cancels the other. Thus, two orders are placed, and as soon as one is made, the other is without effect. For example, if your protection 'stop' is reached, the benefit goal order will be automatically canceled. What is not recommended in any case is to use mental stops.
