PMF: Follow-through: Part II
Summary
The PMF (Power momentum formula) method is fully objective. It is based on a Step-by-Step procedure. The only way to achieve consistency in trading is by following the pre-defined steps. This chapter explains the PMF full follow-through method that is designed to maximize profits by letting the big winners run. The full follow-through method is a specific method for determining the initial stop-loss for a trade once there has been a setup and a trigger and elucidates a general idea of whether the move will be large or small. The chapter further explains that how to manage the risks and rewards in the PMF method for three different levels of risk tolerance. It also discusses the proper stop-loss procedures.