The star in the world of trading – Alexander Gerchik – presents American stock trading techniques on the Russian market.
Fundamentals of Alexander’s trade:
2. The algorithm.
3. Strict discipline.
4. Short feet.
5. Diary of transactions.
6. Thorough analysis of unprofitable transactions.
The most commonly used strategy is a breakdown or rebound after trading at the level.
For beginners, Alexander imposes strict discipline requirements: stops no more than 0.2%, risk management no less than 1:3, no more than 3 losing trades at a time. This guarantees a high stability of the account to the actions of the trader.
Special attention in the methodology is paid to the analysis of unprofitable transactions – this is the basis of the basics. After the analysis, if necessary, we make changes to the algorithm, bringing it to perfection with each new unprofitable transaction. Thus, the number of unprofitable trades will decrease rapidly if we follow the algorithm, no matter how much we would like to bypass it. An algorithm is a contract with itself.
The key feature of Alexander’s method is also a good memory and calculation of the parameters of transactions in the mind, working with a large number of transactions at once at the same time. I.e. 50 or more situations are taken, then orders and stops are placed on them, and after triggering, we look at the result of the entire company on our account. According to Alexander, statistically, such a technique always gives a good profit by averaging the probability of a positive outcome for all transactions.
Below in the list of references are links to Alexander’s always interesting books. Alexander’s course “Trading from A to Z in 60 days” is known.