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“I am attempting to trade the forex market…”

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Dear Mr. Covel,

I am attempting to trade the forex market. I know of no other market where someone can make or lose so much so quickly. To get to the point, I’m looking at the GBP/JPY. If you look at a chart, I’m obviously late to the party. I know about entering a market when it has reached a 55 day high, but I missed that a long time ago. However, it seems to have risen past resistance. So I’m trying to enter midstream you might say. Any advice? Thanks for your time. I just subscribed to your newsletter. Thanks again.

Nathan L.

That’s an incomplete way to see trend following. You need:

Portfolio: What market do you buy or sell?
Bet Sizing: How much of a market do you trade?
Entry: When do you buy or sell a market?
Exit: When do you exit a losing trade?
Exit: When do you exit a winning trade?


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