Thursday, September 13, 2012

Trading Methodology

"All decisions are made BEFORE a trade."

"If you do take the trade, you already know where your initial stop loss will is placed, where your profit target(s) are, if you will trail your stop, where you might get out of your trade early, etc."


After a long journey of losing money, I have finally discovered what I really wanted: to ride through a major trend. You definitely don't need to undergo a painful journey just as I did if you knew and respect the above 2 quotes.

Find a trading strategy (including trade management) that suits you and think about every possible situation that might happen and PLAN for it. This way, you never ever have to think of what to do next.

After countless of trading strategies, trade management techniques that did not suit me, I finally found it. I believe that this would definitely turn me into a profitable trader.

Complete Trading Methodology

What's the trigger?
- Identifying a good setup that coincides with a trend.

What's the stop loss?
- 15 pips below the previous low (point 4).

What's the take profit?
- When the h1 boxes show a change in sentiment. Eg. For a long position, px opens at X and closes near to or below X. For a short position, px opens at X and closes near to or above X.

When to shift to breakeven?
- At 80 pips profit.

Will monitor the results closely :)

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