Opening Position  |  MAR 2011

Opening Position by Jayanthi Gopalakrishnan

As Ken Calhoun says in the St o c kS & co m m o d i t i eS interview of the month (which starts on page 46), you have to be slow to get in but quick to get out. You will get an idea of how much time you need to commit to the markets if you really want to understand their behavior. But even if you understand the markets, you have to have the patience to wait for that right setup to appear on your charts before you hit that enter button. That price setup will have to be one where you expect your returns to be greater than the risk you take. Stephen Massel’s article, “What Can You Expect, Mathematically?” starting on page 42, will help you come up with an objective method to determine what you can expect from your trading system. The tools with which to do your analysis are readily available. Do the research and come up with your own decisions. You don’t have to base your decisions on someone else’s opinions.

by Jayanthi Gopalakrishnan