larry-tentarelliLarry Tentarelli, brought up in the financial industry by parents who introduced him to the markets at an early age, didn’t find his feet in the markets until later on in life.

It took him roughly 7 years to be profitable. Larry learned the power in simplicity by following a simple trend following trading strategy. Now he trades purely stocks and ETFs.

These days Larry is well known for picking big stock moves which he shares on Twitter where he was voted 2nd most helpful trader on Twitter in 2016, on a New Trader U poll.

In the show Larry shares:

  • How to properly use the average true range (ATR)
  • How a 200 Simple Moving Average could change your trading career
  • Why he now uses 100% Technical Analysis despite being introduced to the markets Fundamentally
  • What is the weakest link in a trading system

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57: Larry Tentarelli on the 200 Moving Average & Why it is Critical to His Success | @LMT978
00:00:00 00:00:00

“Everyone knows how to manage a bad trade. You use a Stop Loss. But where people have a lot of difficulty is knowing when to sell their winners.” – 37:05

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Recommended Books

Interview Links

Brokers & Platforms

  • TradeStation
  • Fidelity

Key Insights

  • He advises people to keep trading strategies simple and clean
  • Don’t overtrade
  • Don’t risk too much
  • Use Simple Moving Averages instead of Exponential moving averages
  • Control your emotions by taking away the ego of predicting market movements
  • Spend a lot of time back testing
  • If you have a day job, have enough equity before going full time
  • You have to find a system that works for your personality
  • Don’t trade long hours
  • Treat trading like a business

Larry’s Trading

  • uses 200 SMA
  • trades on the Daily Chart
  • ideal risk reward ratio 3:1
  • win ratio is 40% – 50%
  • believes in letting your winners run
  • takes a long term style of trading
  •  is a trend follower
  • loves to use the 200 SMA price cross for his entry
  • exits at reversals
  • uses ATR (Average True Range) for his analysis

Larry’s Strategy

 

larry-tentarelli-strategy

 

  • Whether Bullish or Bearish, Larry waits for price to cross his 200 SMA
  • He then places a trade on the break
  • He holds his position until price reverses or breaks the 200 SMA on the opposite direction of his trade

HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.

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Forex, futures and options trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. Our website, product contents, and materials are neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on our website or in any materials. The past performance of any trading system or methodology is not necessarily indicative of future results. Substantial risk is involved. Forex trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the Forex markets.

Don't trade with money you can't afford to lose. Nothing in our course or any materials or website(s) shall be deemed a solicitation or an offer to Buy/sell futures and/or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on our site. Also, the past performance of any trading methodology is not necessarily indicative of futures results. Trading involves high risks and you can lose a lot of money.

CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.