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Getting Started in Currency Trading, + Companion Website: Winning in Today's Market, 4th Edition by Michael Duane Archer

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Chapter 20

The Proactive Trader

Introduction

The Goodman Method is composed of three elements: a trading method—Goodman Wave Theory; a money management scheme—the dagger, waltz, and line; and a way of tracking the markets and adhering to the market process—the proactive trader.

The trading method or the money management scheme may not appeal to you, and that is fine. There is more than one way to skin the FOREX cat. But being a proactive trader is a must-do no matter what method you use to seek your currency trading fortune.

“If you do not look, you will not see” is the essence of being proactive. Charlie was disdainful of traders who came to the brokerage house and just stared at the quote boards and the charts—especially the charts. “They are not proactive with the charts,” he would comment.

This chapter contains a set of tools for being proactive. Some of them are specific to the Goodman Method; some of them are not. The former will provide a glimpse inside the more advanced Goodman Method ideas, especially of Goodman Wave Theory. Whatever trading method you decide to use, ask yourself, “How does it help me be proactive with the markets?”

The essence of being proactive is threefold: (1) constantly looking ahead, (2) making hypotheses about why what has happened did happen—and what it means for the market beyond the current bar on the chart, and (3) actively engaging yourself in the market process.

Laydowns

Once a Goodman formation has formed a setup, you are trading for the ...

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