: The price pulls back to test the recent low but fails to make a new lower low (creating a higher low or a double bottom).
: Only once capital is safe and profits are consistent should a trader speculate for extraordinary gains. The 1-2-3 Trend Reversal Method
If you are looking for a of the book, I cannot provide it, but: : The price pulls back to test the
At the heart of Sperandeo's methodology is a simple yet profound business philosophy, which he lays out as three hierarchical rules. This framework, by itself, offers more value than many full-length trading books.
Sperandeo structures his trading methodology around a strict hierarchy of understanding. He argues that consistent profitability requires a top-down approach to the markets. This framework, by itself, offers more value than
The 2B rule is a specialized, highly profitable setup designed to exploit false breakouts at major market highs or lows. It is an aggressive strategy meant to catch sharp institutional reversals.
Risk 1% of capital per trade (not 2% for beginners). The 2B rule is a specialized, highly profitable
Price rallies again and makes a new high, breaking above the previous peak.
| Principle | Rule | |-----------|------| | Maximum loss per trade | 1% of total capital (2% absolute max) | | Risk/reward ratio | Minimum 1:3 (risk $1 to make $3) | | Stop loss | Always placed based on technical levels, not arbitrary percentages | | Position sizing | Adjust so that a stop-out loses no more than 1% of capital |