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Larry Connors: Trading Strategies, Insights, and Quotes

Last Updated on 10 February, 2024 by Trading System


Larry Connors introduction

Larry Connors is a well-known and highly respected figure in the trading community. He is the Founder and CEO of TradingMarkets, a leading provider of trading education, research and technology. He is also the author of the popular book “Short Term Trading Strategies That Work.”

Connors is a veteran trader with more than three decades of experience in the markets. He has a unique perspective on trading that incorporates both technical analysis and fundamental analysis. He has a natural ability to identify trading opportunities and capitalize on them.

Connors has developed a variety of trading strategies and systems that have proven to be successful for him and his clients over the years. His strategies are based on a mix of indicators and chart patterns, but are also flexible enough to be adapted to new market conditions. Many of his systems use moving averages and momentum indicators, such as the Relative Strength Index (RSI).

Connors also puts a great emphasis on money management and risk management. He believes that in order to be successful as a trader, it is essential to have a well-defined strategy for controlling risk. By adhering to strict money management rules, traders can reduce their risk and increase their odds of success.

Larry Connors early life and career

Larry Connors is widely considered one of the most successful traders in history. He was born in 1947 and raised in Brooklyn, New York. He graduated from the University of Rochester in 1969 and began his career on Wall Street shortly thereafter.

Connors’ career as a trader began at American Express, where he worked as a trader in the bond department. He worked his way up to become a top trader, and was eventually promoted to managing director.

In 1982, Connors founded his own company, Connors Capital Group, which specialized in trading options and futures. He was also a pioneer in the development of computer-based trading systems. Connors developed a number of innovative strategies, such as the ConnorsRSI, which he described in his book, Short-Term Trading Strategies That Work.

Larry Connors’ trading strategy

Larry Connors’ trading strategy is based on the use of mean reversion principles in order to identify potential entry and exit points in the market. The strategy places a high emphasis on risk management, seeking to limit losses and maximize profits.

The core concept of Connors’ strategy is to identify when the market has become overextended and is likely to reverse itself. To do so, he looks for specific signals and indicators that suggest a trend is becoming exhausted.

The strategy is highly technical and involves the use of a number of different indicators, including moving averages, oscillators, momentum indicators, and relative strength indexes. Connors also incorporates the use of Bollinger Bands, which are volatility bands placed above and below a moving average. The bands expand and contract based on the volatility of the underlying asset, and they can be used to identify potential points of entry and exit.

Connors also looks for patterns such as double tops and bottoms, head and shoulders, and flags. These patterns can provide clues as to when a trend has become exhausted and is ready to reverse.

In addition to the technical indicators, Connors also incorporates fundamental analysis into his strategy. He looks at valuations, earnings reports, and other economic data to determine whether a stock is undervalued or overvalued.

Overall, Connors’ trading strategy is a combination of technical and fundamental analysis. While it is highly technical and involves a number of different indicators and patterns, it is also based on a sound understanding of market fundamentals. By combining technical and fundamental analysis, Connors seeks to identify entry and exit points that offer the best risk-reward profile.

Larry Connors trading rules

Larry Connors trading rules are a set of guidelines designed to help traders achieve consistent profits. They are based on the teachings of Larry Connors, a legendary trader, author and educator.

The rules are intended to help traders identify and exploit high probability trading opportunities with a low risk and high reward profile. They help traders understand how to determine entry and exit points, and how to manage risk.

The rules focus on momentum-based strategies, which seek to capitalize on the power of trends. They emphasize the importance of buying and selling in the direction of the trend, and avoiding trading against the trend.

The rules also recommend using a combination of technical indicators, such as moving averages and oscillators, to identify opportunities and confirm trends. They emphasize the importance of understanding volatility and properly sizing positions.

Finally, the rules emphasize the importance of discipline and the need to maintain a trading plan, as well as the need to manage risk. They recommend setting stop-loss orders and taking profits at predetermined points.

By adhering to the rules, traders can develop and execute their trading strategies with confidence. With a disciplined approach and sound risk management, traders can take advantage of the markets and generate consistent profits.

Larry Connors trading quotes

1. “The stock market is a place where one can risk a little to gain a lot.”

2. “Successful trading requires both discipline and patience.”

3. “The key to being a successful trader is having a sound trading plan and the discipline to stick to it.”

4. “The most important decision you make in trading is when to enter and when to exit a trade.”

5. “The markets are constantly changing and you must adapt to the changing conditions to be successful.”

6. “Your trading plan should be a roadmap to success and should be tailored to your individual goals and risk tolerance.”

7. “The most important thing in trading is to control your emotions, and not let fear or greed control your decisions.”

8. “The most successful traders are those who are willing to take calculated risks and have the discipline to stick to their trading plan.”

9. “The only way to make money in the markets is to think for yourself and not follow the crowd.”

10. “A successful trader is one who can adapt to changing market conditions and make the right decisions at the right time.”

11. “Successful trading requires a disciplined and methodical approach to entering and exiting trades.”

12. “It is important to diversify your trading strategies to reduce the risks associated with any one strategy.”

13. “Risk management is essential to successful trading and should be at the core of any trading plan.”

14. “The key to profitable trading is to have the discipline to follow your trading plan and stay disciplined in the face of adversity.”

15. “No matter how much analysis you do, trading is still a game of probabilities, so expect to be wrong sometimes.”

16. “Trading is a journey, not a destination. You should always be learning and adapting your strategies to stay ahead of the competition.”

17. “The best traders are those who understand the concept of risk/reward and are able to take calculated risks to maximize their returns.”

18. “Don’t be fooled by short-term market movements. It’s important to focus on the long-term trends and make decisions based on them.”

19. “If you are going to be successful in trading, you must have the ability to recognize and manage risk.”

20. “The most successful traders continually strive to improve their trading strategies and stay ahead of the competition in the markets.”


What is Connors RSI?

Connors RSI (Relative Strength Index) is a momentum indicator developed by Larry Connors that is used to measure the velocity and magnitude of directional price movements. It combines three elements to create a composite oscillator that measures overbought and oversold conditions as well as trend strength. The three elements are: (1) a traditional RSI, (2) a measurement of the number of consecutive days closing higher or lower, and (3) an exponential moving average of the RSI.

More about Connors RSI and Larry Connors trading strategies.

Larry Connors trading results

The results of Connors’ strategies vary depending on the market and individual traders. Generally, his strategies have been found to be effective for short-term trading and day trading. His strategies often involve going long or short on stocks and ETFs, and his strategies have been used to generate profits in bull and bear markets. Connors’ strategies have also been found to be effective in currency trading.


Who is Larry Connors and why is he respected in the trading community?

Larry Connors is a highly respected figure in the trading community, known for founding TradingMarkets, providing trading education, research, and technology. He is the author of the popular book “Short Term Trading Strategies That Work.”

What is Larry Connors’ trading strategy based on?

Larry Connors’ trading strategy is based on mean reversion principles, aiming to identify potential entry and exit points in the market. The strategy emphasizes risk management, seeking to limit losses and maximize profits. It involves a combination of technical indicators, such as moving averages, oscillators, momentum indicators, and Bollinger Bands, along with fundamental analysis, including valuations and earnings reports.

What are the core concepts of Larry Connors’ trading strategy?

The core concepts involve identifying overextended markets likely to reverse. Connors looks for specific signals indicating a trend exhaustion, utilizing technical indicators like moving averages, oscillators, momentum indicators, and Bollinger Bands. He also incorporates pattern recognition, analyzing double tops, double bottoms, head and shoulders, and flags to identify potential trend reversals.

How does Larry Connors incorporate risk management into his trading strategy?

Larry Connors places a strong emphasis on risk management in his strategy. He believes in strict adherence to money management rules to control risk. This involves setting stop-loss orders, determining position sizes based on risk-reward ratios, and overall discipline in adhering to a well-defined trading plan.

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