Buy Signals Sell Signals: Strategic Stock Market Entries and Exits pdfdrive com

Mechanical Trader signals are based on:
- Trading price flow.
- They have no opinion about the market and are following what the market is
actually doing, i.e. following the trend.
- Very strict and delineated rules to govern their entries and exits, risk
management, and position size.
- Being unemotional because when they lose it is because the market was not
conducive to their system, and they will win over the long-term.
- Using the exact same technical indicators for their entries and exits and they
never change them. Their entries are systematic with no opinions needed, just
discipline.
- Trading their technical system using price action and trends so they don’t need
to be an expert on the fundamentals.

While discretionary traders are busy trying to digest what fundamental news and

information mean, mechanical traders are taking the signals they are getting
from actual price movement in the market. Mechanical traders are not thinking
and predicting what the market is going to do, they are reacting to what the
majority is doing based on their predetermined system’s entry signals.
For the average trader, being a 100% Mechanical System Trader usually
maximizes the chance of success in the markets, especially if you are using a
historically proven, profitable system. If you are removing the emotions and ego
from your trading and are controlling your risk of ruin with proper trade size and
stop losses, then you have a high probability of being a consistently profitable
trader.

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Basic signal examples
“In order of importance to me are: 1) the long-term trend, 2) the current chart
pattern, and 3) picking a good spot to buy or sell.” – Ed Seykota
Signals are only one third of your trading system. The other two thirds are more
important; your risk management to avoid the risk of ruin for your account, and
your psychology to risk your mental and emotional ruin while trading through
the peaks and valleys of your equity curve.
Please trade these signals responsibly as results will vary greatly based on
current market conditions.

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