Setup, Trigger, and Follow-through: The Basics
Summary
The most important part of any trade is the structure. If one strays from the structure, he/she decreases the odds of success, increase odds of making a mistake, and increases the chances of emotional response. To trade profitably one needs to use a complete approach. A complete approach comprises elements such as Specific entry and exit rules, hundred percent objective follow-throughs, Statistical performance history and no requirement of interpretation. This chapter explains a specific example of how to move through the setup, trigger, and follow-through method using a simple pattern. While the pattern in and of itself is not profitable, adding a trigger improves its accuracy and adding a follow-through method further improves the potential profits.