Successful trading requires accurate prediction of short-term price movement. But that's not all. Your profits also depend on excellent timing and execution of original tactics. Learn to enter trades at predetermined price levels, and exit them before the market turns to take away your money. Long-term survivors of the trading game also practice another important skill: they preserve capital every time they're proven wrong. After careful planning and precise execution, manage your active positions through every phase, but plan an escape route just in case things turn sour.

Trade time, price and safety. Profits will quickly follow.

Accurate forecasting relies on your ability to see price movement in more than one dimension. Investors can do this with a single price chart, but you can't. Look at your trade setups through a 3-D charting landscape. Identify three time frames that correspond with your chosen holding period. Use a central chart for the setup or pattern you want to trade. Study one segment above and one below this position focus. For example, day traders can find opportunities on the 5-minute chart, and then use the 1-minute and 60-minute charts for 3-D analysis. Or position traders can study promising setups on the daily chart and then examine the 60-minute and weekly charts to prepare for successful execution.

Do you know your holding period? If not, stop what you doing and figure it out immediately. Until you can answer this important question BEFORE each trade, you probably can't succeed at this difficult game.

Pick a specific holding period that matches your lifestyle. Then don't change it until careful analysis offers a better strategy. The rational mind will turn poorly-defined time frames into major losses. Trades become investments and ex-traders become humbled investors when they don't know how long to hold a position. Experiment slowly with different time frames as experience grows. During these testing phases, prepare to answer the time question clearly before pulling the trigger on each trade. Write it down and stick with it, or get ready for trouble.

Pack each chart with layers of market data to uncover support-resistance (S/R) levels. Successful traders earn their livelihood by finding and executing setups along these S/R interfaces. Recognize their impact on every trade setup. Price levels organize the 3-D charting landscape into well-marked zones that predict swings and breakouts. Price reacts to these boundaries according to their unique character and specific location. S/R may present an absolute barrier that can't be crossed, or exhibit elasticity that can be stretched but not broken. In common horizontal S/R, resistance becomes support when price mounts it, and vice-versa when it falls through. Keep in mind some types of S/R will drive traders crazy. They can force stocks to wobble back and forth across a central pivot, rather than find a solid floor or ceiling.

Many types of S/R print on each price chart. Most carry a load factor that will force it to break when buying or selling intensity exceeds it. Once price pierces a level, it should expand sharply toward the next barrier. This powerful mechanism provides the source of most profitable trading strategies. These important levels define both reward and risk. Look to buy at support when the nearest resistance is far above. Look to sell at resistance when the nearest support is far below. But first make sure the charting landscape hides no dangerous obstacles. A single overlooked S/R level can have disastrous results on your bottom line.

We're happy to hear you're doing well just throwing money at hot stocks and flipping nice gains. Guess what? Short phases of the broad cycle of market behavior allow these simple-minded tactics to work. When times change (and they always do), prepare for failure. Smart traders who watch their positions in three dimensions will be taking your money.