BUY SIGNAL - Note

When I give a BUY SIGNAL it usually means that there may be an opportunity, this will fail from time to time. What some technical analysts do is take positions when they get the signal, if it fails they sell it at a minor loss and move on, and if it succeeds you will hold on. Basically what I'm saying is that you only need to be right from time to time, and you will take long position on BUY SIGNALS that will fail, but it's just a matter of catching some that succeed and that's how you make gains then, by holding on. You may take the right call only 25% of the time, but the beauty of it, is that as long as you cut your losses (-7% to -8% max) and stay long when you start making gains of let's say +20% and more, you will be profitable. You will with no doubt have to take losses, and you may be wrong more often then your right, and that's the case with the most successful traders. As long as you don't stay long when your down hard more than -7% to -8%, you will be able to fight another day and be wrong more than once. If you don't cut your losses it doesn't matter how big your gains are, it may only take 1 or 2 trades to wipe you out.