PMF – Calculating the profit target

As you know from my explanation of the STF method, there can be no trade for us without a setup, a trigger, and follow-through. In the previous lesson, you learned how to find the setup as well as the trigger. This lesson teaches you the PMF follow-through. As you recall every valid trading approach involves three parts, the setup, the trigger, and follow-through.

This lesson shows you how we follow through on the PMF method. The next lesson shows you how the followthrough method can be used in various profit-maximizing strategies. The PMF follow-through method provides the following information when used according to my suggestions.

learned that the ability to establish a valid setup and trigger are critically important to the correct use of the PMF method. Once this has -Bernstein Char Count= 0 70 30 DAYS TO MARKET MASTERY been done, the next step is to use correct and effective follow-through. Here is the step-by-step method for determining follow-through on PMF trades


This lesson. Mark any buy and sell signals (if any). Then mark the approximate first and second profit targets. Since you do not have the actual price lows and highs, you can use approximate numbers in responding to this quiz.


You have now completed the first lesson in your PMF method. In this lesson, you learned how to identify the trigger point (E point) for bullish and bearish MOM setups using the MOM indicator. The lesson outlines a step-by-step or “cookbook” procedure for finding and identifying the trigger point. In Lesson 8 we will look at a very simple but comprehensive method for adding follow-through to the MOM divergence setups and triggers.

The last few lessons gave you a specific explanation of the STF structure that is part of the PMF method. As you well know by now, every trade requires a setup, a trigger, and follow-through. This is true for the PMF method as well as every method I will teach you. Unless you plan to use luck as your trading system, you will not fare well.

If you follow the STF structure no matter what your trading methodology may be, your odds of success will improve substantially. In Lessons 7 and 8 I taught you how to find the setup as well as the trigger and initial follow-through. This lesson will teach you the PMF full follow-through method that is designed to maximize your profits by letting the big winners run. The full follow-through method gives you the following information.

Last word

From the previous two lessons, recall that the PMF method is fully objective. It is based on a step-by-step procedure. The only way to achieve consistency in your trading is by following the steps. The only way to learn from your mistakes is to know where you may have gone wrong. There are two types of losing trades—the unavoidable loss and the dumb loss. The unavoidable loss occurs when a method loses money simply because not all methods are right all the time. The dumb loss occurs when you make a mistake in applying the method.

The dumb loss is a loss that you made due to your own ignorance, lack of discipline, or lack of organization. The dumb loss is unacceptable. The only way you can learn how and when you took a dumb loss is by looking over your procedures. Here are the specific procedures for PMF.

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