In this short article I will be addressing one of the keys to success in any business which is Money Management and Trade Management.

This really is something that is often glossed over as it can be quite quick to explain but is very often under valued or under appreciated as a consequence.

First off I want to explain how I manage my overall account equity.

You know the TA, but now what? Have a Plan & keep is simple 

I’ve been mulling over a few thoughts about the mental side of trading and how to try to make this mechanical and while this comes naturally to some others do have to work at it especially at the early stages of learning.

Previously we looked at the range break out and we considered the following as a consideration of when to trade which pattern, "the move into the range dictate the most likely direction of the break out move, 65% of the time it is a continuation pattern 35% of the time it is a reversal pattern."

Following on from the Fibonacci basics article we can now start to use a structured approach to identify and trade with Fib levels.

Trading Fib levels is pretty much the same as trading a pullback but you are using fib levels to determine where and when you you will get into a trade and place your stop loss level as well as identify your target levels.

Range Break Outs form the basis of my core trading. Generally speaking I call most consolidation patterns a range whether it is a triangle in one of its many guise's, a head and shoulder pattern, and so on. The point is to identify a period on the chart when price is contracting which then should lead to a period of expansion.