Video 33 A, B, C, D, E, F & G: Protective Stops

Question 1

A beginner in a loss refuses to consider that math now favors the bears. Relies on hope and denial. And does not want to take a loss and feel like a loser.

Answer 1

Question 2

If the price falls below a Major Higher Low, the premise of a bull trend is no longer valid.

Answer 2

It’s either in a Trading Range or a Bear Trend

So it is a reasonable place to place your stop

Question 3

A bull trend needs higher highs and higher lows, but it especially needs ____________

Answer 3

Major Higher Lows.

Sometimes a strong rally doesn’t reach a higher high.

Question 4

Al calls this a High 2. Two legs.

Answer 4

Question 5

This is a good section to review for examples of price action. Not a lot of new information to study. But goes over how to manage a price action in a trend. Similar dialogues to his books

Answer 5

Question 6

In a strong bull trend, bulls will buyer a 50% Pullback.

Answer 6

If it falls much below 50%, then premise of strong bull is less likely true

Question 7

When you have a Double Top is a tight trading range like this, and the trading range lasts for 20 bars or more bars, especially if you get a decent sell signal bar the bears have a __% chance of a swing down.

Answer 7

40%

Question 8

It’s very difficult to make a living as a scalper. Need to only take the best scalps and trade huge size. Rick (stop) usually has to be bigger than reward.
Requires unrealistic probability for most traders.

Answer 8

Expert scalpers scale in.

Focus on swing trading. You can use reasonable stops and only need to be right 40% of the time.