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TheBuyZoneForex 01

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100% found this document useful (2 votes)
1K views32 pages

TheBuyZoneForex 01

Uploaded by

Yell George
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
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----------------------------------

THE
----------------------------------
BUY ZONE
----------------------------------
FOREX TRADING
----------------------------------
STRATEGY
----------------------------------

BY

AVERY T. HORTON, JR.


THE BUY ZONE TRADING STRATEGY – FREE VERSION

ACKNOWLEDGEMENTS
ACKNOWLEDGEMENTS

Bob aka SirSedgewick – who introduced me to FOREX.

Petey aka Sheldon – who told me to “find the pattern” and holds
down the fort while I’m away.

And to all those who I didn’t name but offered help and
support, you have my sincere appreciation.

© Avery T. Horton, Jr. – All Rights Reserved


Unauthorized duplication or distribution is strictly prohibited.
THE BUY ZONE TRADING STRATEGY – FREE VERSION

DISCLAIMER
We are not liable for any investment decisions by the reader. The information offered is not to be
construed as an offer to buy or sell any securities. All information obtained is from sources deemed
to be reliable but is not guaranteed. Information for the stock observations was obtained from
sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any
results from the use of the information. Your use of the stock observations is entirely at your own
risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the
information. You must assess the risk of any trade with your broker and make your own
independent decisions regarding any securities mentioned herein.

We are not brokers. NO advice is given or implied. This information is for educational purposes
ONLY. Nothing should be considered a recommendation to buy or sell any stock or security. We
strongly recommend that you consult with a professional broker or financial planner before you buy
or sell any stock or security. We believe the information in this publication to be true but assume
no responsibility for any incorrect information. This is not a solicitation to buy or sell any security.
The author may at times hold positions in any of the stocks mentioned in this document. Investing
in securities carries a high degree of risk and you can lose all of your investment money. Past
performances do not guarantee future results. Please consult with your own independent tax,
business and financial advisors with respect to any investment, including any contemplated
investment in any company mentioned. All information contained in this publication must be
independently investigated for accuracy. We will NOT be responsible for the consequences of
anyone acting on this purely educational material.

The information in this report is provided on {as is basis}. The information represents general buy
and sell alerts and is not intended to provide specific investment advice to any Individual or group.
We do not warrant the accuracy, completeness, timeliness, or reliability of the information
contained herein. The materials and information in and provided by this report include facts, views,
opinions, and alerts of individuals and organizations deemed of interest. We and its affiliates and
agents do not endorse these views, opinions, alerts or recommendations, give specific investment
advice, or advocate the purchase or sale of any security or investment. In no event will we and our
agents and affiliates be liable to you or anyone else for any decision made or action taken by you
in reliance on news and information contained herein or distributed from this report. We and our
agents and affiliates shall not be liable to you or anyone else for any loss or injury resulting directly
or indirectly from the use of this. We do not guarantee that trading methods or systems presented
in its services will result in profits or losses. Past results are not necessarily indicative of future
performance.

Day trading has large potential rewards as well as risks involved. Day trading may not be suitable
for all users. You assume the entire cost and risk of any type of trading you choose to undertake.

Readers are advised that the report is issued solely for information purposes and is not constructed
as an offer to sell or the solicitation of an offer to buy. The opinions and analyses included herein
are based from sources believed to be reliable and in good faith but no representation or warranty,
expressed or implied is made as to their accuracy, completeness or correctness. Readers are urged
to consult with their own independent financial advisers with respect to any investment. All
information contained in this report should be independently verified with the companies
mentioned.

© Avery T. Horton, Jr. – All Rights Reserved


Unauthorized duplication or distribution is strictly prohibited.
THE BUY ZONE TRADING STRATEGY – FREE VERSION

To contact the author:

Avery T. Horton, Jr. aka TheRumpledOne,

P O BOX 43575, TUCSON, AZ 85733

therumpledone@gmail.com

GIFTS AND DONATIONS ACCEPTED

If you donate $50.00


$50.00 or more to my PayPal account, you will
receive the MT4 version of the BUY ZONE FOR DUMMIES
indicator.

© Avery T. Horton, Jr. – All Rights Reserved


Unauthorized duplication or distribution is strictly prohibited.
THE BUY ZONE TRADING STRATEGY – FREE VERSION

NO SQUIGGLY LINED
INDICATORS WERE
HARMED IN THE
PRODUCTION OF
THIS BOOK!

© Avery T. Horton, Jr. – All Rights Reserved


Unauthorized duplication or distribution is strictly prohibited.
THE BUY ZONE TRADING STRATEGY – FREE VERSION

INTRODUCTION

Let me introduce myself. My name is Avery T. Horton, Jr.


Jr.

You may know me by my internet handle – TheRumpledOne or


TRO for short. You probably also know that I have been
BANNED from more than one forum and chatroom for helping
my fellow traders profit.

I have been a computer programmer and a trader since 1977.


1977.
I have a B.S. degree in computer science.

Buy Zone Trading is a simple strategy that keeps you on the


profitable side of a trade.

It doesn’t matter if you are a swing trader or day trader, Buy


Zone Trading can work for you.

After you read this book,


book, you can throw away all of your
indicators. You won’t need them. When it comes to trading,
indicators are for suckers!

© Avery T. Horton, Jr. – All Rights Reserved


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THE BUY ZONE TRADING STRATEGY – FREE VERSION

CHAPTER 1 – BUY ZONE TRADING

One lesson I learned was NOT to chase the price. All of the
books tell you that. But then they go on talking about some
indicator that, if used, causes you to chase the price.

If you use indicators, you will get entry/exit signals all over
the chart. Sometimes you profit and sometimes you don’t.
There is no consistency. The market gurus then talk about
position sizing, risk management, stops, trailers, etc… Once
again, there is no consistency.

Trading is simple. People have been trading for centuries. The


essence of trading is to wait for an opportunity, enter the
trade, wait for an opportunity and exit
exit the trade with a profit.

Trading is NOT rocket science. But many of the gurus with


PhD’s, who create fancy named indicators using higher math,
would lead you to believe otherwise. Think about it… what do
sigmas, alphas and deltas have to do with trading?
trading? Why do I
need an exponential or smoothed anything to trade? Isn’t
trading more common sense and market knowledge than
anything else?

The Buy Zone Trading Strategy is simply entering the trade in


the “zone”.

© Avery T. Horton, Jr. – All Rights Reserved


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THE BUY ZONE TRADING STRATEGY – FREE VERSION

The long zone (blue lines) is the Open


Open Price (white line) +
.0003 and +.0004.

The short zone (red lines) is the Open Price (white line) -
.0003 and -.0004.

For the USDJPY use .03 and .04 instead.

Go long on green (bull) candle in the long zone and short on


red (bear) candle in short zone.

I reset the Buy Zone at the start of the hour.

© Avery T. Horton, Jr. – All Rights Reserved


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THE BUY ZONE TRADING STRATEGY – FREE VERSION

Or you can use the London, New York and Sydney open
prices.

SL is 5 to 7 pips.

TP is whatever you can get before it goes against you.

There are no other entries for this strategy.

The Buy Zone may


may look simple. That’s because the Buy Zone
IS SIMPLE!

Trading does NOT have to be complicated to be profitable.

© Avery T. Horton, Jr. – All Rights Reserved


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THE BUY ZONE TRADING STRATEGY – FREE VERSION

CHAPTER 2 – EXITS

In FOREX, each time the price moves 1 pip, you are up or


down 1% due to the 100% leverage.

That means if you are short


short EURUSD at 1.2800 and it drops
100 pips to 1.2700, you just doubled your money!

One exit strategy is to wait for your money to double, exit ½


the position and let the rest ride.

Another exit strategy is to sell a portion at the next fib


retracement line,
line, some at the next and so on.

Another exit strategy is to sell at the psychological price


levels that end in x.xx00, x.xx25, x.xx50 and x.xx75.

Learn to take 3 to 5 pip profits at first. Then as you master


this, you will learn how to take more.

Just make
make sure to TAKE PROFIT WHEN YOU CAN because the
only thing the market gives you is opportunity.

© Avery T. Horton, Jr. – All Rights Reserved


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THE BUY ZONE TRADING STRATEGY – FREE VERSION

CHAPTER 3 – When and Where to Trade

FOREX trades 24 hours a day. Trading starts Sunday at 5 PM


EST and ends Friday at 5 PM EST.

When you trade the The Buy Zone Trading Strategy, the
when is not important.

You have defined entry points. You enter the trade at that
point.

Also where you trade, your broker, is important.

Most brokers charge a 3 pip spread on the EURUSD. Some


say they only charge 2 pips. The
The reality is those brokers are
dealing against you. They take the opposite side of the trade.
That’s why they profit.

There is no fixed spread in FOREX. Those spreads are


artificially made up.

www.efxgroup.com),
But there is one broker, EFXGroup (www.efxgroup.com
(www.efxgroup.com ), that
does NOT charge a spread. Instead, EFXGroup charges a
small commission.

When the EURUSD price is in the 1.28xx range, you pay


about $.64 commission per mini lot per trade. So if you buy
10 minilots, same as 1 lot, you pay $6.40 in commission.
When you sell, you pay $6.40. That’s $12.80 round trip.

Compare that to the 3 pip spread or $30 you are being


charged elsewhere where you have to make 3 pips to break
even.
© Avery T. Horton, Jr. – All Rights Reserved
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THE BUY ZONE TRADING STRATEGY – FREE VERSION

If you make 3 pips at EFXGroup, you have made


made $17.00
profit!

Now, doesn’t it just make sense, as in dollars and cents, to


have EFXGroup as your broker?

One other benefit is EFXGroup gives real time LEVEL II for


FOREX. The other brokers do NOT want you to see this:

© Avery T. Horton, Jr. – All Rights Reserved


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THE BUY ZONE TRADING STRATEGY – FREE VERSION

Here’s Level II just 7 minutes


minutes later:

Instead of a 2 pip spread, the spread is only 1 pip.

Sometimes the bid equals the ask and sometimes the bid is
higher than the ask. If you are quick, you can take
advantage of these situations.

Do you think the other brokers want to you see the real
spread when they are charging you more?

Just tell EFXGroup TheRumpledOne sent you!

© Avery T. Horton, Jr. – All Rights Reserved


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THE BUY ZONE TRADING STRATEGY – FREE VERSION

CHAPTER 4 – FREQUENTLY ASKED QUESTIONS

The Buy Zone is so simple that many people have a hard time
understanding the rules. They try to “think”. If the rules
rules don’t
say to do something, then don’t do it – IT’S THAT SIMPLE!

Q. Do I have to wait for the candle to close to enter the


trade?

A. NO. Nowhere in the Buy Zone rules does it say to wait for
the candle to close to enter the trade.

Q. Do I use a market
market order to enter the trade?

A. NO. Use a limit order. Open + 4 pips to buy.


Open – 4 pips to sell short. NEVER USE A MARKET ORDER.
Market orders are used when you are PANICKING!! If you
want to enter or exit a position so badly you don’t care what
the price is that is when you use a market order.

Q. What other indicator(s) should I use on my chart?

A. NONE. Nowhere in the Buy Zone rules does it say to


use other indicators. You don’t need any other
indicators.

Q. Why is the Stop Loss 5 – 7 pips?

A. Michal
Michal Kreslik and I ran statistics for all the major
pairs and the result was if a trade goes against you 7
pips, you will have to wait a long time for the price to
return. Also, the Buy Zone is 8 pips wide. If you

© Avery T. Horton, Jr. – All Rights Reserved


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THE BUY ZONE TRADING STRATEGY – FREE VERSION

enter at the trigger line and the trade goes


goes against
you. You should be reversing your position shortly!

Q. Where do I get the BUY ZONE FOR DUMMIES


INDICATOR?

A. The BUY ZONE FOR DUMMIES INDICATOR along with


some other indicators are sent to people who have
made a donation to therumpledone@gmail.com PayPal
account as a “thank you” for their support.

Q. Can I trade other methods along with the Buy


Zone?

A. “BEWARE THE MAN WITH ONE GUN… HE


PRACTICES WITH IT!”

Q. Why does the Buy Zone work?

A. The Buy Zone is a statistically calculated


system that is designed to take advantage of
the trading range of the instrument being
traded. For example, as of January 17, 2008, the
GBPUSD has an average hourly range of 31 pips pips over the
last 960 hours. The Buy Zone is 8 pips wide. You can’t fit
31 into 8. The range has to stick out of at least one side.
So, if you enter at the trigger line, you have the statistical
edge of making a profit… IT IS THAT SIMPLE!

Q. Is this a “scam”?
“scam”? I have read that you are a “scammer” on
the internet.

© Avery T. Horton, Jr. – All Rights Reserved


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THE BUY ZONE TRADING STRATEGY – FREE VERSION

A. NO… LOL! How can this be a scam when I have given


away the manual and the Buy Zone indicator for free?
How would I personally gain? For it to be a “scam”, I
would have to gain something. I think I figured out
why people say things like that. Perhaps they spent
hundreds or thousands of dollars on a system that only
produced losses. Maybe they went to a high priced
seminar and their account blew out. Maybe they have
some system or indicators
indicators they are selling. They are
upset at Buy Zone traders’ success, so they spread lies,
rumors and make false accusations.

Q. Why did you get banned from TradeStation, eSignal,


ForexFactory and other forums?

A. Those are all VENDOR forums. Vendors don’t like me me


because they see me as a threat. I give away lots of
indicators. If people use my free indicators then they
don’t buy the vendor’s indicators. I have made them
look bad by creating systems, indicators and displays
they couldn’t and/or didn’t think of. Whenever they
do something stupid, I post about it so the world can
see. I believe that the internet should be about
FREELY SHARING INFORMATION. Vendor forums
restrict the free flow of information. Vendor forums
consider you SHEEP and see themselves as as
sheppards. To them, TheRumpledOne is the BIG BAD
WOLF!

© Avery T. Horton, Jr. – All Rights Reserved


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THE BUY ZONE TRADING STRATEGY – FREE VERSION

CHAPTER 5 – MY QUESTION TO YOU

Let’s say that I showed you a “secret machine” and I told you to
put a dollar in it and the “secret machine” returned you two
dollars. I told you that you could come
come back every day and
use the machine. You would probably do it, right?

Let’s say, that you do it. You do it every day for a week and
each time it gave you back two dollars. You do it every day
for a month and each time it gave you back two dollars. You
do this faithfully every day for six months.

One day you go to the machine and there’s another machine


sitting right next to it. My question to you is:

“DO YOU STICK WITH THE MACHINE YOU KNOW RETURNS


MONEY OR DO YOU TRY OUT THE OTHER MACHINE?”

You would be so tempted to try that other machine, wouldn’t


you? Perhaps it returns three dollars. Maybe it will return
five, twenty, a hundred or thousands of dollars. How will you
know if you don’t at least try it?

Do you really need to try it or is curiosity


curiosity eating away at you?
Can you just stick with what you know works or can you be
tempted away? Are you focused on what works or does the
promise of greater rewards tempt you?

© Avery T. Horton, Jr. – All Rights Reserved


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THE BUY ZONE TRADING STRATEGY – FREE VERSION

TRADING RULES

Trading:: Rules and Philosophy by Linda Bradford Raschke.

You should read these until you know them by number!

TRADING RULES

1. Plan your trades. Trade your plan

2. Keep records of your trading results.

3. Keep a positive attitude, no matter how much you lose.

4. Don't take the market home.

5. Successful
Successful traders buy into bad news and sell into good
news.

6. Successful traders are not afraid to buy high and sell low.

7. Successful traders have a well-


well-scheduled planned time
for studying the markets.

8. Successful traders isolate themselves from the opinions


opinions
of others.

9. Continually strive for patience, perseverance,


determination, and rational action.

10. Limit your losses - use stops ! ( mental imo )


© Avery T. Horton, Jr. – All Rights Reserved
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THE BUY ZONE TRADING STRATEGY – FREE VERSION

11. Never Cancel a stop loss order after you have placed it!

12. Place the stop at the time you make your trade.

13. Never get into the market because you are anxious
because of waiting.

14. Avoid getting in or out of the market too often.

15. Losses make the trader studious - not profits. Take


advantage of every loss to improve your knowledge of market
action.

16. The most difficult task in speculation is not prediction but


self - control. Successful trading is difficult and frustrating.
You are the most important element in the equation for
success.

17. Always discipline yourself by following a pre - determined


set of rules.

18. Remember that a bear market will give back in one


month what a bull market has taken a three months to build.

19. Don't ever allow a big winning trade to turn into a loser.
Stop yourself out if the market moves against
against you 20% from
your peak profit point.

20. You must have a program, you must know your program,
and you must follow your program.

© Avery T. Horton, Jr. – All Rights Reserved


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THE BUY ZONE TRADING STRATEGY – FREE VERSION

21. Expect and accept losses gracefully. Those who brood


over losses always miss the next opportunity, which more
than likely
likely will be profitable.

22. Split your profits right down the middle and never risk
more then 50% of them again in the market.

23. The key to successful trading is knowing yourself and


your stress point.

24. The difference between winners and losers isn't isn't so much
native ability as it is discipline excercised in avoiding
mistakes.

25. In trading as in fencing there are the quick and the dead.

26. Speech may be silver but silence is golden. Traders with


the golden touch do not talk about their success.

27. Dream big dreams and think tall. Very few people set
goals too high. A man becomes what he thinks about all day
long.

28. Accept failure as a step towards victory.

29. Have you taken a loss? Forget it quickly. Have you taken
a profit? Forget it even
even quicker! Don't let ego and greed
inhibit clear thinking and hard work.

30. One cannot do anything about yesterday. When one door


closes, another door opens. The greater opportunity always
lies through the open door.

© Avery T. Horton, Jr. – All Rights Reserved


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THE BUY ZONE TRADING STRATEGY – FREE VERSION

31. The deepest secret for the trader


trader is to subordinate his
will to the will of the market. The market is truth as it reflects
all forces that bear upon it. As long as he recognizes this he is
safe. When he ignores this, he is lost and doomed.

32. It's much easier to put on a trade than to take it off.

33. If a market doesn't do what you think it should do, get


out.

34. Beware of large positions that can control your emotions.


Don't be overly aggressive with the market. Treat it gently by
allowing your equity to grow steadily rather than in bursts.

35. Never add to a losing position.

36. Beware of trying to pick tops or bottoms.

37. You must believe in yourself and your judgment if you


expect to make a living at this game.

38. In a narrow market there is no sense in trying to


anticipate
anticipate what the next big movement is going to be - up or
down.

39. A loss never bothers me after i take it. I forget it


overnight. But being wrong and not taking the loss - that is
what does the damage to the pocket book and to the soul.

40. Never volunteer


volunteer advice and never brag of winnings.

41. Of all speculative blunders, there are few greater than


selling what shows a profit and keeping what shows a loss.
© Avery T. Horton, Jr. – All Rights Reserved
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THE BUY ZONE TRADING STRATEGY – FREE VERSION

42. Standing aside is a position.

43. It is better to be more interested in the market's reaction


to new information than in the piece of news itself.

44. If you don't know who you are , the markets are an
expensive place to find out.

© Avery T. Horton, Jr. – All Rights Reserved


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THE BUY ZONE TRADING STRATEGY – FREE VERSION

45. In the world of money, which is a world shaped by


human behavior nobody has the foggiest notion of what will
happen in the future. Mark that word - Nobody! Thus the
successful trader does not base moves on what supposedly
will happen but reacts instead to what does happen.

46. Except in unusual circumstances, get in the habit of


taking your profit too soon. Don't
Don't torment yourself if a trade
continues winning without you. Chances are it won't continue
long. If it does, console yourself by thinking of all the times
when liquidating early reserved the gains that you would have
otherwise lost.

47. When the ship starts


starts to sink, don't pray - jump.

48. Lose your opinion - not your money.

49. Assimilate into your very bones a set of trading rules that
works for you.

© Avery T. Horton, Jr. – All Rights Reserved


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THE BUY ZONE TRADING STRATEGY – FREE VERSION

THERUMPLEDONE’S FAVORITE TRADING BOOKS

TRADING IN THE ZONE, Mark Douglas - MUST READ TO GET


YOUR MIND
MIND RIGHT

TRADING FOR A LIVING, Dr. Alexander Elder - THIS IS A


REFERENCE BOOK

WHY SMART PEOPLE MAKE BIG MONEY MISTAKES AND HOW


TO CORRECT THEM, GARY BELSKY & THOMAS GILOVICH -
MUST READ

DAY TRADE ONLINE, Christopher A. Farrell - THIS TEACHES


THE MECHANICS.
MECHANICS.

© Avery T. Horton, Jr. – All Rights Reserved


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THE BUY ZONE TRADING STRATEGY – FREE VERSION

"GREED IS GOOD"

Trading is about MAKING MONEY.

You make money by TAKING PROFITS.

The market gives you nothing but an opportunity.

What you do with it is UP TO YOU.

You either pass or enter, hold or exit.

It is ALL UP TO YOU.

It is NOT about the company.

I trade stocks that I don't even know the company name. I


don't care. What they do is not of importance to me.

All I want is to MAKE MONEY by SELLING for MORE THAN I


PAID. That is ALL that I care about.

Is that GREED? Who cares what you call


call it? I don't. It
doesn't matter.

TRADING IS WAR.

IT IS A JUNGLE OUT THERE.

NO ONE CARES ABOUT YOU.

THEY ARE AFTER YOUR MONEY.

© Avery T. Horton, Jr. – All Rights Reserved


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THE BUY ZONE TRADING STRATEGY – FREE VERSION

YOU PUT YOUR MONEY AT RISK AND SOMEONE WANTS TO


TAKE IT FROM YOU.

THEY WANT YOU TO BE STUCK WITH THE "OLD MAID".

THEY LIE,
LIE, CHEAT AND STEAL.

THEY MANIPULATE.

I strongly suggest that you GET YOUR MIND RIGHT if you


want to trade.

And the first step is to QUIT FOCUSING ON THINGS THAT


DON'T MATTER.

You enter a trade, it goes up 1% and stops... what do you


do?

YOU TAKE THE 1%! You have a profit and your money is no
longer at risk.

You can always buy back later, again and again, over and
over.

There is always another opportunity on the horizon. Just learn


to wait and recognize it.

Get your mind right and focus on what is important... TAKING


PROFITS.

TAKE ALL YOU CAN. GIVE NONE BACK.

© Avery T. Horton, Jr. – All Rights Reserved


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THE BUY ZONE TRADING STRATEGY – FREE VERSION

WHAT TO DO IF YOU HAVE LOSING POSITIONS

A little experiment.

Most of us have a few losers in our portfolios.

Next trading session, instead of looking for winners, stop the


bleeding. In other
other words, don't lose more. Sell your losers
when your tools tell you to and buy them back cheaper/more
shares or find something else to trade.

Many times you can get the same stock at a discount of 5%


or more!

If you do this enough times, you may wind up with twice the
shares!

Not to mention, by booking the loss now, you don't have to


worry about the IRS giving you a hard time.

© Avery T. Horton, Jr. – All Rights Reserved


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THE BUY ZONE TRADING STRATEGY – FREE VERSION

TRADING VISUALIZATION

The action is fast sometimes and you have no time to THINK.


You must react. To react properly, you
you must condition your
brain to respond in the moment.

Let's say you bought XYZ at 2.36.

Visualize what you will do if it goes to 2.45 and then stalls.


Same for 2.44, 2.43, 2.42, 2.41, ....

Visualize what you will do if it drops to 2.35, 2.34, 2.33,


2.32,....
2.32,....

See the Level II window in your mind's eye. See the candles
turn from green to red.

If you do this each day before the market opens you will have
conditioned your brain to react.

REACT!

DO NOT HESITATE.

DO NOT SECOND GUESS.

DO NOT THINK.

REACT!

Let's say you want to buy ABC, it's exactly the same.

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THE BUY ZONE TRADING STRATEGY – FREE VERSION

Visualize what you will do AFTER the market opens. See the
price move up and down. See when you enter your order.
Once again, you are conditioning your brain to react.

Always use money management.


management.

© Avery T. Horton, Jr. – All Rights Reserved


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THE BUY ZONE TRADING STRATEGY – FREE VERSION

TRADING OR COVERING YOUR ASS

I love to say, "It's not what you trade but how you trade it."

Have you ever sold and then watched the price go up?

That happened to me so many times I had to "find the


pattern" and I did!

The pattern was entering a trade and having the stock drop
and then being stuck and then selling and then having the
stock take off. But what was the driving force behind selling?
It was to COVER MY ASS. In other words, after being in the
hole, I would sell as soon as I could to get out even or with a
few dollars burger money.

But what I was really doing was ABANDONING EVERYTHING I


KNEW ABOUT TRADING AND FOCUSING ON THE MONEY.
That is what doomed me! I quit looking at the charts and just
focused on the price.

What I needed to do was analyze the trade from a detached


point of view. Instead of focusing on bailing at the first
opportunity, I needed to use my tools to look at the stock as
if I was thinking about BUYING IT!! That way, I would NOT
be selling a stock that looked like
like a winner, I would be
holding or buying even more.

I joked with a fellow trader that if I could just "flip a switch"...


Well I can! All I have to do is think "do I want to buy" rather
than look to save my butt.

© Avery T. Horton, Jr. – All Rights Reserved


Unauthorized duplication or distribution is strictly prohibited.
THE BUY ZONE TRADING STRATEGY – FREE VERSION

THERUMPLEDONE’S FAVORITE WEBSITES

www.kreslik.com - where I post my code and comments.

www.edwdebono.com - I always read today’s message.

www.ddmachine.com - one stop due diligence.

www.shrewinvestor.com - informative.

www.stockfetcher.com - where I run the filters.

www.efxgroup.com - my forex broker.

www.prophet.net - best free charts IMHO.

finance.yahoo.com – easy to use.

www.secform4.com - for those who like to follow insiders.

www.quote.com - use the I-


I-Watch tab to watch the bigboys.

www.stockscores.com - great information and lesson.

www.smallcapcenter.com - great real time


time scans.

www.briefing.com - free news.

This is a must read on money management:

http://www.optionetics.com/articles/article.asp?id=8558

© Avery T. Horton, Jr. – All Rights Reserved


Unauthorized duplication or distribution is strictly prohibited.
THE BUY ZONE TRADING STRATEGY – FREE VERSION

FINAL WORDS FROM THERUMPLEDONE

What is trading? Trading is war. Trading is a war between


buyers and sellers. In order to win the war (profit), as a
trader, you must be able to determine who is winning or in
control at any time.

Trading is a combination of buying, holding, selling and


waiting.

Holding is waiting while being long or short.

It only takes a few seconds or minutes to buy/sell a currency.

Most of your time trading is spent WAITING.

Learn to WAIT for the opportunity to appear. Sometimes the


wait is short, sometimes long. LEARN TO WAIT. BE PATIENT.
If you miss your entry, learn to trust that you will get another
chance. If you miss your exit, just take what you can and be
happy.

To paraphrase the principles of Sun Tzu: “What you do


determines
determines whether you lose. What the market does
determines whether you profit.”

Master the simple. Stay focused. That's all you need to profit
in the market.

MAY ALL YOUR DEALS BE ACCEPTED.

© Avery T. Horton, Jr. – All Rights Reserved


Unauthorized duplication or distribution is strictly prohibited.

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