While many traders accept this principle in general, they don't appreciate the extent to which it should be applied.  And therefore, many don't understand just how important this principle is nor the effect is has on long-term performance.

In this Special Report I'd like to illustrate how members of our Professional Trade Services program apply this principle to all aspects of the trading process.  Perhaps you'll discover there's a vast difference between the professional level approach we use and the approach you have been using.

And that difference in approach could be the key to your performance.

Unlike the average stock trader that views a trade system as the Holy Grail to market success, a professional trader allows the broad market to guide EVERY trade decision.

A broad market analysis is performed before any other action can be taken.  Since the broad market has more influence over the movement of individual stock prices than any other single factor, it alone defines how all decisions should be made.

Now let's suppose the market is moving down on rather weak volume and is approaching a fairly strong support level.  Our market analysis indicates the odds are high that the market will reverse at or very near this support level and the bulls will take market control.

This being the case we begin to make plan to take long positions as close as possible to the bull reversal, which will be the beginning of the expected up move in the broad market.

We don't just jump into trades because a trade system has generated a signal, the need to meet some arbitrary performance goal or we simply need the money.  Our decisions are guided by the evidence of our broad market analysis.

We know when to trade and which direction to trade from our analysis of the market, and thus we allow the market to define these critical decisions.

Now that we have a clear plan on when to trade and which direction we should trade, how aggressively should we trade?  How much capital should we expose?

This too must be determined by the analysis of the broad market.  Capital exposure should be inversely proportional to the risk.  That simply means that less risk justifies greater exposure.

There are two primary factors that determine the level of risk:

  Whether one side (bulls or bears) is able to dominate the other and;

  The location and potential strength of obstacles (support or resistance levels) that can effect the smooth progression of price.

In our example we know the bears are showing weakness in the current down move, but we don't have recent evidence that the bulls have strength.  There is a possibility that the bulls could be equally as weak as the bears and thus produce a weak move.  And during this move the bulls must battle opposition from the bears.

Such a move, where both sides show relatively equal strength, entails greater risk.  Capital exposure in trading such moves should be greatly less than the exposure of better technical moves.  Such moves should only be traded with a light exposure.

On the other hand, the bulls could reverse the bear move with strong volume and show a clear position of power dominance over the bears.  With a dominating power position over the bears the odds favor a move that will progress farther and with less opposition (ie. risk).  Such moves justify a greater exposure of capital.

But in our example we have no evidence of the bull strength at this time.  So we must plan our initial strategy based upon the evidence we have.  We expect a bull reversal, but we are uncertain about the probable bull strength.

Therefore, we plan to enter long positions with only a light exposure until and unless we obtain evidence that a greater exposure is justified.

Although we haven't actually entered any positions yet, we are developing a strategy based upon the evidence of our broad market analysis.  This is allowing the market to guide all our trade decisions.

We perform a broad market analysis everyday because market conditions can change very quickly.  In addition to the fact that conditions can quickly change, the market doesn't operate according to absolute rules.

While the technical evidence provides the most probable future action, it doesn't guarantee it.  And the market will sometimes move in opposition to the odds.

A continuing analysis is critical to understand what is happening in the market, especially when the market moves against the odds.  In many cases such moves are false moves or  a "last gasp" attempt by the weak side to gain some additional ground.  And such situations often create an even greater opportunity to trade (greater exposure).

Since the market guides all trade decisions, we must stay on top of the market action and be able to quickly adjust our plan and strategies to the current condition.

But for our example let's assume the market progressed as expected and the bears moved the market down near the support level.  The bears are still showing weakness.  Furthermore, today's market action indicates that the bull reversal is now imminent. 

The bulls are about to take control.

Based upon the latest analysis we conclude it is now time to enter long positions with a light capital exposure.  Using a couple of technically sound trade systems we locate stocks poised to move in harmony with the expected up move in the broad market.

We are using our trade systems to locate individual stocks showing strong upward momentum, since we expect the market to move upwards.

Notice that we never touched our trade systems until the broad market first indicated that it was time to trade!!!

Prior to this time our trade systems may have been spitting out signals right and left, but it doesn't matter.  Just because a stock is technically poised to move in a predetermined direction is NOT, by itself, justification to enter a trade and place precious capital at risk!

A trade system is a tool, just like any other trading tool.  And it must be used properly to achieve optimal performance.  It must be used in harmony with the broad market.

As I am illustrating, the broad market should determine WHEN one should use their trade system.  And the broad market also determines WHICH signals to use. 

In our example we would only consider buy long signals and ignore any short sell signals.  This is true even if there are many short signals and only a few long ones. 

The primary guiding principle is to trade in harmony with the broad market.

Contrary to what many average traders believe, it is best to have a large pool of signals rather than just a few.  This is important for several reasons.

First, it is important to diversify your trades at the beginning of a move.  The goal is to spread your capital over enough trades so that you have a reasonable chance to match the movement of the broad market. 

As I previously pointed out, price can sometimes move in opposition to the odds.  While the stocks are technically indicating an upward move, some will move down instead.

If you enter only a few positions at the beginning of a move, the negative movement of just one or two trades can result in a loss of overall profit even when the market moves as expected.  To avoid this negative situation, capital should be reasonably diversified so that overall returns closely match the movement of the market.

"Kevin, I want to earn more than just what the market is doing."

Then keep reading.  We have just begun to play this move.

There's another reason why a trader wants a large pool of potential trade candidates.  And it is directly related to earning more than the market move.

Even the signals that are not initially traded may come into play later on.  Let me briefly explain how this works.

We provide two superior trade systems: The Double Thrust Stock Trading System and The Power Spike Stock Trading System.  Each is a technical pattern system that identifies stocks showing strong momentum and poised to move in a predetermined direction.

Members of our Professional Trades Services program receive a daily broad market analysis and daily trade signals from both of our superior trade systems.

The daily Signal Generation Reports on each of our systems also provide a ranking methodology.  This allows one to logically select one signal over another.

This is an initial trade selection method.

But we don't just throw some money at a trade then sit back and see what happens.  This is what average traders do, but not professional-level traders.

We track the performance of all the signals in the pool.  That includes the signals we traded AND even the ones we didn't trade.

Beginning immediately after trade entry we'll discover that some stocks are performing better than others.  As a result, we'll begin to funnel capital away from poor performing trades to those trades that are the best.

This is how we are able to leverage the better trades and avoid weak and even unprofitable positions.  This trade management strategy is explained in detail in a Special Report entitled "The Position Leverage Strategy".

This is a "MUST READ" report for any serious trader!

We entered long positions when we had good evidence that the bulls were going to reverse and move the broad market up.  We used technically solid trade systems to generate a nice pool of trade signals.

We used good diversification at the beginning so that our returns will at least match the movement of the broad market.  But then, using The Position Leverage Strategy, we begin to funnel our capital away from poor performing trades into the better performing trades.

Within a very brief period of time we will find the number of active positions greatly reduced and a majority of our capital earning well above average profits in the best performing trades.

As you can see, both our capital and our trades are continually being worked through the move. 

We continue to perform a daily broad market analysis.  Again, the broad market must guide the entire trading process.

In our example we entered long positions with a light exposure in anticipation of a bull reversal.  Suppose the reversal was strong and the bulls showed clear power dominance over the bears.

In that case, we would be justified to increase our capital exposure.  We would be correct to put more money into the game.  And guess where that money will go?

Into the best performing trades, of course!

And we will adjust our play based upon the current market condition. 

For example, suppose the bulls have made a nice up move, but are now beginning to show weakness via declining volume.  Furthermore, suppose that the market is now approaching a resistance level where the price has previously reversed down.

Since the current market situation indicates the price could again experience a reversal against our trades, the correct action would be to greatly reduce exposure or even close positions.

This is just one example of how we  play our trades based upon the current broad market condition.  Our trade decisions are tied directly to the action of the market.  We want to stay in harmony with the market.

It is true that this approach to trading takes effort, patience and discipline.  But there is something else that is also true...

IT WORKS!

This approach produces consistent performance.  It provides long-term profitability.

I know most average traders don't have the time or desire to do all the work required to achieve consistent performance.  Like most people, you probably have a full-time job, a family and a real life.

Unlike myself, you're not a market geek who lives and breathes the excitement of the stock market.  You haven't spent years devoted to the study of price action and the development of trade strategies to capitalize on market situations.

You want the gain without the pain.

Our Professional Trade Services program is specifically designed to provided everything you need to trade on a professional level and enjoy consistent trade performance.

This unique program includes THREE powerful services:

The Logical Trades Market Analysis & Signal Service provides a daily broad market analysis.  As a technical analyst with over 20 years experience, I have earned a reputation for providing accurate and concise information.

This service is unlike any other you'll find.  To my knowledge, I am the only analyst willing to present the evidence of my conclusions.  I explain what is happening in the market and what is likely to occur.

You'll find that my analysis is not only informative, but highly instructive. 

Most importantly, you'll know exactly what you need to do to trade in harmony with the broad market.

In addition to the analysis, I also include the signal pool I am personally using to trade.  You'll be able to follow what I am personally doing in the market action.

If you agree that Market Harmony Trading is key to consistent performance, The Logical Trades Market Analysis & Signal Service will provide the critical guidance you seek.

The Double Thrust Trade Signal Service and The Power Spike Trade Signal Service provides daily signals based upon these two superior trade systems.

This service combination program is truly an incredible and unique resource for those desiring above average returns. 

Get all the details of each of the services provided in this special program NOW...

CLICK HERE

For a very limited time, we are offering a mind-blowing special on this program.  First, we are going to provide a subscription rate reduction that is simply breath-taking. 

But this special rate will ONLY apply to the first 150 subscribers, so DON'T WAIT, HESITATE OR PROCRASTINATE!

When these open slots are filled, this special will be immediately withdrawn.

Secondly, we'll going to give you the first 15 days absolutely FREE. 

That should remove any reason you may have to delay. 

Join today and see for yourself how this incredible program can transform your stock trading performance.

Get all the details of the super special and JOIN TODAY...