Chapter 5

Follow-Through

First published: 02 January 2012
Citations: 1

Summary

An integral part of all trading is follow-through. Follow through is the third part of the STF (Setup, trigger and follow-up) method. Follow through is the weak link in the chain as they are unable to manage risk. But managing risk, in the form of a stop-loss, is only part of the success formula in trading. Traders must also know how to maximize profits. This chapter discusses follow through with details; it encompasses the different types of follow-through such as trading in one contract, trading in units of two contracts and trading in units of three contracts. The chapter provides a follow-through on seasonal setup and trigger trades using several different strategies depending on position size.

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