So guys I’ve learnt everything but in don’t know how to put it together. When i go onto trading view what’s the first thing i do (analyse the higher time frames I know) but then how do you do that. Are you looking for trends? Then what does that mean when moving to a lower time frame then eventually taking a trade. Its really confusing. Does anyone have like al list of things they do when they go to analyse the charts that would be very helpful thanks!
Hi,
A very good question. It is really common just to want to get stuck in. But here is a list of things that you should be absolutely sure of before you press that BUY or SELL button:
1 Do I have a trading strategy?
2 Do I have a trading plan that aligns with my trading strategy?
3 Is the trade that I am looking at included in my trading plan? Eg if my plan says trade the top five primary pairs, is this trade based on one of those pairs?
4 What is my zone of interest for trading this pair, am I going to trade long or short?
5 How will I know when to enter the trade (what are my two or more primary indicators that tell me to enter the trade?
6 Do I know how much money (as a % of my trading bank) I am going to risk?
7 Do I know that my stop loss has to be set at a level relative to my entry point that ensures I do not lose more than my planned risk?
8 Do I know my take profit level, and at what point I exit the trade to achieve that take profit level? Am I going to set that automatically or am I going to revisit the trade at certain times to check and make any adjustments to my take profit, move the stop loss in my favour, etc?
If you have a sufficiently detailed trade stategy and trade plan based on how to achieve that strategy, you will know the answers to every one of these questions, and you will not hesitate to enter the trade when the price action matches that of your trade plan.
If you don’t know the answer to even one of these questions, don’t trade.
I hope this is helpful. For a successful trader, all this is learned (mostly the hard way) over the loss making career, before becoming a successful trader. By the way, I am not a successful trader, but I do know how to become one, which is better than for the last ten year s of trying.