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Forward to User’s Basic Guide
The purpose of this User’s Basic Guide is to bring you up to speed with TFE’s (The Fractal’s Edge) basic
trading methodology as quickly as possible. While the methodology taught in this Guide is based on certain
principles or concepts found in Chaos Theory, Wavelet Theory, and Quantum Mechanics, it does not go into
detail. If you are interested in the science behind the system, a separate manual containing all the fine points is
available to our clients.
This course answers the following basic questions:
• How do I select a stock or futures contract to trade?
• After I make my selection, is there a potential trade?
• If so, where is my entry point?
• What should my initial stop loss be?
• How do I determine my daily stop loss value?
• How do I know when to exit?
• If the market moves against my position, where do I exit?
In addition, since money management is one of the most important and often neglected aspect of trading, we
have included a section that addresses money management strategies, with a section for stocks and a section
for futures. It answers the questions:
• What should my portfolio look like in terms of risk management?
• How much can I safely risk on this trade?
• What should my position size be?
The Fractal's Edge is one of the finest trading tools anywhere. If you carefully study the course, follow the
trading rules, and apply sound money management strategies, you will do well. I wish you every success with
your trading.
Ken Herbert, Sr.
www.fractalsedge.com
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