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The phenomenal Successful Trading Plan 103 & 104SELF DEVELOPMENT/METHODOLGY/PSCHYOLGOY The phenomenal Successful Trading Plan 103/04 3. Trade Preparation By concentrating on getting ready, the exchanging plans for the higher time allotments, the cash administration will dependably keep the proportion altogether. Trade proportion is the quantity of pips one may make versus the quantity for which one has a chance. Trade proportions for swing exchanging the H4 time span can be around +3 to +5 to +1 positive, which is incredible. However, on the D1 and W1 time periods, it can be +5 to as high as +50 to 1 positive. 4. Trading Rules As with any business, money management, or in the case of trading, trade management, is a crucial element that needs to be addressed in your trading plan. Having a robust trading plan with predetermined trading rules will allow you to act subjectively in response to market changes. Trading is not about winning all the time; it is about effectively managing your trades, whether they are winners or losers. Unfortunately, many come to trading with a gambling mentality and do not exploit the advantages available when managing trades. Do not risk one cent on the market until you have clearly defined each of your trade management rules. Following are seven trading rules, which you must determine for each and every trade you make and some potential considerations for each: 1. Entry 2. Initial Stop Loss 3. Position Size 4. Re-entry 5. Trailing Stop Loss 6. Adding (Position Building) 7. Profit Taking Exit Strategies For each one of these rules, you must have a pre-defined trading plan. You must know when you will enter the trade and execute your entry when the criteria are met. You must know your initial risk for each trade as determined by your initial stop loss before you risk any money on the market. You must plan when you will add to your winning positions and how you plan to exit your winning trades. It is not effective to determine your trading plan while in the trade. Emotional and psychological factors will influence your judgement and affect your decisions FOLLOW YOUR TRADING PLAN, REMAIN DISCIPLINED AND KEEP LEARNING :) More elements will follow... Like, share, Comment and follow us to keep updated on our professional trading ideas and education :)
NASDAQ:AAPLEducation
by SMPTrader
Trading Entry and Exit ChecklistsSELF DEVELOPMENT/METHODOLOGY/PSYCHOLOGY Trading Entry and Exit checklists Over the past 18 years of trading, it has been a crucial step in my development to constantly critique myself and my trading strategy. I constantly monitor my performance on a daily, weekly,monthly,quartley and yearly timeframe. Listed below is a small simple example of some of the checklists that i have used in the past prior to entering and exiting a trade. Entry Rules 1. Is the stop loss placed past the strongest support or resistance line? 2. Am i following my trading rules? 3. The risk/reward is acceptable 4. Have i double checked my entry/stop loss and target position? 5. No news announcements that will affect my trade? 6. Bid/ask spread - Is it in normal range for this pair, this session, this time? 7. AM i risking more then my agreed 1%? 8. Correlation - AM i trading against myself with already open trading trades? Exit Rules 1. Has the market behaved as predicted? If so stay on track 2. Has the trade reached the support or resistance line? 3. Has the stop been placed too far away? or to close? 4. Am i exiting to early? 5. If unsure of trade exit immediately? 6. If i was impatient and entered trade exit immediately? 7. Is there an upcoming news event that will affect my trade? 8. Is the trade changing directions? 9. Don't take profits to early!! Are you exiting before your target line? How has yours differed? is it similar?
BITFINEX:BTCUSDEducation
by SMPTrader
My 10 Rules before Taking a Trade.1 : Dessiner les Niveaux clés et la Tendance. (a) Trend and Supports/Resistances Majeures. (12-16x timeframe) (b) Trend et Support/Resistance on shorter term(6 or 8 time short). Draw the most recurrent Fibonaccis retracements or/and extensions. (c) Check Action Price on your trading timeframe. Draw short-term fibos. 2: Find a Signal Only valid on KEY LEVEL. Ideally respect the trend, with exception of reversal trades. No signal. STAY FIAT. Ignore Signals if : -Low volume. -Complex retracement. -Sloppy action price. 3 : Find Confluences. Is this scenario direction or targets the same if i use different projections? Different Bias? Does market profile validate my fibo support? Confluences help classify your potential setups by quality and help reduce exposure and overtrading. 4 : Plan the trade. We have the entries, the targets. Congrats that was the easy part, now you need to find invalidations, partial profit targets and when to rise your stops. For advanced trader, time to plan your time related stoploss, potential re-entries and how you plan to ladder your entries. Reminder : The closer your stop is, the best is your ratio and so are your earnings, in the long game, ladder entries will boost your profits. 5 : Calculate your REALISTIC Risk/Reward. No volume on the breakout of your triangle? no reaction on your fibo level? Trump is on a twitter fury and excite the dumb money.Most of the trades are not gonna go like you planned, you're gonna need to get out or reduce your exposure for many reasons. Being optimistic is good day to day life, when trading it's the opposite. Be Honest and Pessimist. 6 : Define Sizings and Maximal Exposures. Up to you, i personnally use 1% for my best setups, when i'm not so confident or trading an aggressive setup probably more like 0.3%. I usually ladder my entries with 4-10 positions. Still working on it. Reminder : A drawdown >25% brings a risk of ruin between 0.5 to 1%. My 10 years experience in risk/reward management 2 cents. This one percent HAPPENS. A human common bias is considering small percentage as irrelevant. They are very relevant, get other this bias. In my opinion : <1% risk per trade is MANDATORY if your capital is consequently above your cash flow. 1-3% if you cash flow afford you to rebuild your capital quickly. >3% if you are masochist. 7 : Mental check-up Am i calm? Do i want to trade this setup logically or am i pushed by Greed or desire of Revenge? What are my recent results? Am i emotionally involved? What are my recent results? Winning Tilt : Care of Overtrading, loose Stop losses, passing by mandatory partial profit. Losing Tilt : Care of Stops too tight, freezing and undertrading. 8 : Accept uncertainty and pending loss. A drawdown is normal even to very successful traders, for exemple with 50% success rate, you are gonna frequently have a 16 consecutive losing streak. Why this trade would be exceptionnal? Don't take this trade if you are not ready to lose 16 times your stop without blinking, without complaining. If you find yourself doing that, then it's a sign you are too exposed. you DON'T HAVE to risk 1% per trade, especially if you haven't proved you are a winning trader with a long history of profitable trades. Accept this trade is almost irrelevant and part a of a bigger picture. A lifetime of profitable trades that are going to increase your capital. No more no less. 9 Backtest before exposing yourself. Is this trade part of my bigger plan? Am i in my confort zone? Am i factually profitable with that sort of trades? If yes, Green Light. If no, don't panic, this work is not worthless. It is very valuable to open ourselves at other technical analysis, other instruments. But no so recommended to burn some bills on it. Time to Paper test this setup, or trade it on a demo account. Make stats on it, is it better than your actual strategy? Yes, you just made yourself richer? No?Smarter then..
COINBASE:BTCUSDEducation
by JJFF21
1
Warning! ADA goes down to go square up Hi guys! Rule number one: Every coins should go square up. At the moment, Ada follows the rule number one! It has square up at his first support. Now, will it go up or go down has his next resistance to still square up? If ADA goes down, it will go down at 60%! So, WARNING!!!! Be patient and enter at the right time. Add me on telegram to invest at the right time in ADABTC. Free: web.telegram.org PRIVATE ROOM $$: write me privately here or telegram: @JadeDD I love you xxx
by JadeDD
2
AUDUSD > Long PossibilityAUDUSD > Area of interest > 0.77462 - 0.77542 Oanda 10/13/17 closing price @ 0.78860 w/ increase @ 0.88% Pullback to S2 / S3 levels is required for set-up to remain valid. Buy Stop Entry will be placed with further confirmation and if analysis rules/strategies are met. Potential Targets: T/P 1 @ 0.78676 T/P 2 @ 0.78894 T/P 3 @ 0.79987 * Personal analysis only. Please use your own rules and strategies prior to entering market. ** Forex trading involves HIGH RISK. Before entering a trade, carefully consider your objectives, financial resources and level of experience.
Long
by ALSM59
Basic rules for trading my Swing levelsBASIC RULES FOR TRADING MY SWING TRADE LEVELS : SL/PT For every swing trade I use different SL. It is because I search the chart for the best place for the stop loss order. My PT depends on how far my SL is. Ideally the distance to PT is more or less the same as the distance to my previously determined SL (if I choose SL for example 100 pips, I use PT also around 100 pips). This is because I like Risk Reward Ratio close to 1:1. However, there are more ways to trade my swing levels. Here are some with very good results: a. Risk Reward Ratio 1:1 : When trading this way I don’t move my SL. There are only two possible outcomes: full SL or full PT. If you don’t feel that agressive you can move your SL in simillar way like in intraday trading i.e.: move SL below/above the reaction or at BE when you are about 70 – 80 % in open profit. b. Risk Reward Ratio 1:2: You try to gain 2x more than you risk. When price reaches 50 % of your profit you move your SL below/above the reaction. For example: your SL is 120 pips so you want PT 240 pips. When the price moves 120 pips in your favour (50 %) you move your SL below/above the reaction. This method has very good results but is quite mentally challenging. c. The same as previous one with the exception that you don’t move your SL below/above reaction but at your break even level. d. Risk Reward Ratio market dependant: Risk Reward Ratio in this method ranges from 1:1 to 1:2 depending on the market conditions. This requires some skill to determine how far the move could go. I use this method when I want more than 1:1 but don’t want to go for Risk Reward Ratio 1:2 because I think it is too risky. My most frequent risk reward ratio with this method is around 1:1,5 *I use limit orders when trading swing trades. Macroeconomic events I trade my swing positions even during significant (marked in red) macroeconomic news. There are so many of them every week that if I wanted to quit my position before every such event the position would just rarely have enough time to reach my PT which is usually over 80 pips far.This approach may look a bit agressive but it is working nicely. There is one exception: I close all my swing positions and all pending orders before the most significant news. Those are news that are issued by central banks and concern their monetary policy. Here are some of them: a. Monetary Policy Statement and BOJ Policy Rate (JPY) b. FOMC Statement and Federal Funds Rate (USD) c. Federal Funds Rate and Official Bank Rate (GBP) d. RBA Monetary Policy Statement and Cash Rate (AUD) e. RBNZ Rate Statement and Official Cash Rate (NZD) f. Bank of Canada Rate Statement and Bank of Canada Monetary Policy Report (CAD) g. Minimum Bid Rate and ECB Press Conference (EUR) h. Some other significant news concerning Brexit, US presidental election, significant news concerning Grexit, etc... *If you trade your own swing trades with SL tighter than about 50 pips I suggest you adapt the rules and close the trades even before less significant macro events.
by Trader_Dale
2
Basic rules for trading my intraday levelsTrading rules for intraday levels 1 . Understanding levels - I trade all my levels when the price reaches them. If I have for example 2 short levels it doesn’t mean that price will go up to reach those two levels nor does it mean that I think the market is going down. What it means is: If the price reaches 1st short level – I go in the short trade. Using rules I wrote below. If the price reaches the 2nd short level I go again in a short position using the same rules. 2. Profit Target/Stop loss - Profit target: 10 pips. - Stop loss: 12 pips. - I use this PT/SL because it suits me personally. It is also possible to go for much bigger profit targets because there is strong reaction to my levels quite often. I recommend trying 1st profit target 10 pips and 2nd profit target for example 20 pips (or use some type of trailing). 3. Securing your position - If the market went your way at least 7-8 or more pips it is possible to move SL. This way you can prevent turning a winner into a loser. You can move SL either to the place where the market turned or to Break even level. If you move the stop loss or not depends on your own judgement and your risk aversion. 4. When I consider the level already “tested“ - If the market turns 3 or less pips before reaching the intraday level and makes 8 or more pips consider the level already tested and do not trade it anymore. This rule is not so clear-cut. For example if the market turns 2 pips before my level and makes 12 pip reaction – I won’t take the trade anymore. However if the market turns 3 pips sooner and makes not so strong 8 pip reaction I may still take the trade. 5. Macroeconomic news - Never trade during significant macroeconomic news. Close all intraday trades at least 3 minutes before the announcement no matter if they are in open profit or losing. You can trade again if you see that there is no reaction to the news or wait about 10 minutes after the announcement (or better – after the macro volatility subsides). 6. Limit vs. market orders - For intraday trades I use market orders only. I use alarms that I put few pips before the levels so I don’t miss any. - It is possible to use limit orders but you need to be aware of these factors: o Macroeconomic news o Situations when market turns a bit sooner making the level not valid anymore. o Sometimes with market order you can jump in the trade for a slightly better price. o Securing the position is harder when away from computer. o 7. How long are levels valid - My intraday levels are valid until they are tested or until the next levels are published. - My levels work for EU, US and ASIAN trading session. - I usuallly don’t trade Asian session because I need to sleep from time to time
by Trader_Dale
HOW TO TRADE DIVERGENCES I will discuss one of the methods of trading a divergence. The main advantage of the divergence trading is that you are able to enter the market right at the beginning of the swing. The rules to follow: 1. Spot a difference in a direction of momentum and price 2. Wait for a reversal pattern to complete 3. Enter the market in the direction of the momentum 4. It is not recommended to enter against the main trend (not the same as a price direction) direction. 5. Always have a predetermined short target. 6. If the trade is based only on a divergence, then use a 1st target, otherwise use a partial position close P.S. Divergence trading is a 100% technical, so it's signals are not reliable in a long term, but very useful in a short term swing trading. Your likes is the best motivation for me to keep up :) Any questions are welcome!
Short
by Marenno
EURCAD Potential Short *READ* Rules for Entry Below!FX:EURCAD has been consumed by bearish momentum today and there is still potential to hop on that momentum to pick up some nice profits with minimal risk. Please follow the rules below for how to go about this trade and also please note the short summary below the trading rules that summarizes how this trade set up could be rendered invalid. Please note the following rules below for entry: A corrective retracement to the 1.49275 level 1.49275 level holding as resistance Enter on bearish momentum after the two rules above have been confirmed Stops around 1.49600 Profit whatever you can get (in a perfect world the the lower support level of around 1.48500) This trade will lose its potential if either of the two first rules become no longer applicable. For example if price action fails to retest the 1.49275 level and pushes lower to target before a retest or if the 1.49275 level fails to hold as resistance and price action pushes higher with bullish momentum. You will find that my style of trading often holds a greater risk than reward, however the potential of price action moving in the favor of my position where profit can be liquidated and banked before price action moves against me is very high when the rules are followed. If you find yourself liking my style of trading please feel free to follow me as I will post potential trades like this rather frequently.
Short
by UnknownUnicorn261897
TRADER’S RULES:Let’s glimpse into the basics and do not forget to use these rules. It’s proved - they do work! TRADER’S RULES 1. Always work in the direction of the dominant trend 2. Find the strategy where you are most successful, namely the one that gives the minimum account drawdown 3. Reduce the number and size of transactions in case of losses, and vice versa 4. The main rule of profitable trading is control over losses 5. Plan ahead 6. At any time, assume that your plan is not working 7. Everything that happened is history. Focus on the future 8. Success in this business requires incredible concentration and mental costs. Learn to relax 9. Never allow your winning attitude to became unprofitable 10. If you have done something wrong, immediately close the position 11. If you do not see the possibilities – do not trade 12. Do not be a hero. Do not think that you know more than the market. Work with confidence, but always doubt yourself 13. Never overtrade 14. Do not take risks before and immediately after the release of important economic data. This is not the trading but the gambling 15. Avoid emotions 16. Use not just a price stop, but a time stop. If you are waiting for a breakthrough of the market, and it did not happen, close the position, even if it is in profit.
by djeniks
8
Rule based trading: better to not trade, than lose it allIt's a good idea to come up with a systematic way of trading. I learned a great deal from Tim West, I'm indebted to his teachings. He taught me about the importance of risk management, and how it can trump trading accuracy in the long haul. You can be profitable even with random entries, if your tp is bigger than your stop. That made me think a lot, and I'd like to share one interesting way to look at the markets with everyone. Slap on the weekly and daily pivots, and my WMA Short term bands for example. You can clearly see how you can gauge risk, but using these signals, and estimate your take profit level. A max of 5% risk per trade is a good idea, with 3% being ideal. Don't be overly greedy, and don't try to trade for the sake of it, it's a business and it should be approached seriously. If you do otherwise, you're nothing but gambling. It's a good idea to seek coaching, there are plenty of 'experts' in the internet, and plenty of people willing to take your money. I can vouch for Tim West, his coaching has been of tremendous help to become consistently profitable. Best of luck to everyone in this 2015 that is just beginning. Cheers, Ivan.
by IvanLabrie
3