Page 202 - ART® Study Manual html5 - flash

® “Home-Study Course” Study Manual Page 202

________________________________________________________________________

The Difference Between “SARs” And Re-Entry Patterns

Do you see the difference between the two? “SAR” trades require
confidence and a fearless approach to trading. When you have a few
“SARs” lose money in a row, that will be the test to see how you feel. If
you feel nervous or anxious and upset, avoid trading the “SARs”.

If you are a day trader and at the end of the day, you feel you have over
traded, avoid using the “SAR” for awhile. If you’re day trading,
“SARs” can really run up your commissions which is ok when you are

profitable, but can be devastating if you are not profitable. If you had
an unprofitable day trading “SARs”, and your loss falls within normal
“Draw-Down” days, you are going to feel ok. But if your “SARs” cause
your “Draw-Down” days to be out of line with your normal “Draw-
Down” days, then stop and reevaluate.

Usually problems with “SARs” center around not waiting for high
enough volume signaling a significant turn around point in the current
trend.

________________________________________________________________________________________________

Copyright © 2012 TradersCoach.com, Inc. All rights reserved. Any reproduction and/or electronic
transmission of this document is prohibited without the prior written consent of TradersCoach.com

and is a violation of international copyright law. AR-1021-04-06.