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I wonder if everyone know this already……for me, it was something new…..something that put money in the pockets without having to be smart about multiple time frames, multiple indicators, candlestix and patterns knowledge and the works…….something so basic that one could trade it, make profits out of it, but not be able to sound very intelligent in a group of day traders.

Just go back to June 2007………didn't have the patience to go back even further, and count each day's moves…….Interesting to note though that 56% of the times the day closed in the same direction as the direction of the first bar crack, and just holding a position from 10am to 3:25 am already puts us in profit territory.

A further 30% of the time, markets close sideways ,and another 14% of the time, markets have broken the 5min bar, and reversed in the opposite direction and closed in the negative if you were to hold till close.

The very knowledge that 56% of the time, markets tend to move in the direction of the first 5min bar crack gives us confidence……we are no more shivering and worrying about probable losses. We have the odds more on our side and want to milk those odds to its end.

Knowing this is great……..the sideways pattern is part of trading….But how do we minimise the losses? Is there a way of bringing those 14% losses down by adding another rule? Yes, there is…….bringing down, but in trading, never totally able to eliminate. And we don't mind it one bit, so long as we can bring down the losses, win more than lose, win bigger and lose smaller, and trade the minimum.


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