The Tyro Trader has been posting a series of articles that detail specific types of trade set-ups from Michael Taylor.

These posts detail the description, market condition, entry, exit, stop-loss placement, dangers, and – of course – examples of the following set-ups:

Breakout Trades

Gap Close (I refer to them on here as “Gap Fades”)

“Fade to Moving Average” Trades

“Moving Average Bounce Trades”

… and others worth viewing.

Professional traders often say that newer traders – or even experienced traders – need only master two or three set-ups to be profitable in the marketplace. I would say that I have developed experience in approximately five patterns, which I classify as the “Impulse Buy,” “Impulse Sell,” “Bollinger Band Squeeze,” “Sweet Spot in the Data,” and “Fade the Gap” strategies.

I should take the time to classify each of these patterns as thoroughly and professionally as the Tyro Trader, and I encourage traders of any level to study and benefit from viewing the ‘favorite patterns’ from other traders.

Van Tharpe is famous for saying that we can only trade our beliefs about the market. While it is difficult to take favored set-ups from other traders and trade them perfectly from the start, it does benefit us to view the patterns of other traders, and see which ones make the most sense to us, and whether or not we can incorporate some of those strategies into our own ‘beliefs’ and understandings of how we trade the market.

True beginners would do well to classify a variety of ‘trades conditions’ and set-ups to see what they all have in common and which might work best for your own risk tolerance and personality.

View some of these set-ups from the Tyro Trader and think about how you can potentially incorporate them into your growing arsenal.