Holiday Reading: MaoXian's Trading for Dummies Series

 

One of the Dummy Lesson charts

For those who used to read my old site you know that I'm a huge fan of what's come to be known as the "Dummy" style of trading. I wrote a lot about it back in the day. In my mind the tenets of that style are, to quote myself (there's a lot more detail over there):

  • Keep It Simple, Stupid (KISS)
  • Trade with the trend
  • Trade only active, liquid stocks
  • Define any risk
  • Manage risk by adjusting a stop loss order.
  • Always enter a protective stop loss order
  • Always trade with good reward-to-risk profiles
  • Have a well-defined plan and stick to it

At some point several years ago MaoXian re-did his site and the original lessons were lost. Well I've just discovered that the original 'Trading for Dummies' lessons can be accessed via the Wayback Machine. I highly recommend reading several of the trade examples / lessons. I still use concepts from those lessons all the time and that's partially why you'll see so many range contraction scans and alerts here on SwingTradeBot.com.

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