If your instrument has indeed generated a SHORT signal, it will look something like this:-

The next day, price will do one of 3 things. Either it will break down thru the 'Short' figure shown on the chart, or it will go the other way thru the 'stoploss' figure, or it won't touch either.

If it breaks thru the 'Short figure first, you open a SHORT position for the number of shares you are comfortable with (position sizing is a seperate topic), with a stoploss at the 'stoploss' figure shown on the chart.

If price breaks thru the 'stoploss' figure first, you abandon the opportunity to trade this security, and wait patiently for another opportunity (and it WILL come!). The 'stoploss' is actually an 'abort' line, beyond which you forget about this particular opportunity.

If price stays WITHIN the two boundaries, take no action, and wait for the next day, where the process can be repeated. You must wait for price to break one or other of the levels you are watching, i.e. ignore any 'fresh' signals that occur before the original SHORT level or Stoploss level is hit.

Once you open a trade, you need to monitor it once a day, to make sure you get the most profit. Each day, check the closing price of your position to see whether you have been stopped out. If you have not been stopped out, move your stoploss to 'lock in' some of your profits. Experience of your favorite instrument is needed to become good at moving your stoploss, but a good place to start would be to use one of the tried and tested strategies in our e-book, 'Trading the Grail'.

And that's it! 10 minutes a day, and a reputation as a 'master trader', courtesy of TradeStars.com.