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Risk Disclosure
Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
Hypothetical Performance Disclosure
Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.
Testimonials
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Live Trades
This presentation is for educational purposes only and the opinions expressed are those of the presenter only. All trades presented are NOT TRADED IN A LIVE ACCOUNT and should be
Hello Dale,
I’ve purchased your full suite and really enjoying the videos and knowledge you share. I have a burning question that I’ve asked elsewhere and haven’t received answer. Everyone always talks about sellers/buyers defending their position. However, aren’t those “defenders” looking to make money just like we are? I.E. They enter a short, at some point, they’re looking to take a profit. So, by the time a position retraces to the original entry, wouldn’t they have been out long ago? Now, maybe they’re looking for a reentry at that level, but a defense? The only way I see that happening is that price didn’t reach whatever target they were looking for. Am I at all correct in thinking this way? And, if so, are there clues I can look for to see that, yes they have unloaded so no point in looking for that defense? Thank you for all you do.
Hello BOB,
That’s a good question, and I cover it in more detail in my Volume Profile book. Let me tell you the core stuff: You are right that those traders might already be out. However, it was an important zone in the past, and the market is aware of it. Other participants may want to enter a new trade there. Another strong force driving the price up from a support level is sellers taking their profits as the price reaches the support. Sellers taking profit results in market buy orders. That’s why the price reacts to those volume-based levels even though the original initiators of the move may be out already (but maybe they still want to add to their positions there or defend their trade entry). All in all, all these sorts of forces push the price from a support zone.