This preparation means a lot. Remember 70% of this job is Psychology and %30 of it is Methodology.
Now let’s come and quick look to the 10 questions of this list.
- Is there a trend?
- Which way?
- Timeframe Scale (In which TF I’m in or What is my transactions expiry date? These sorta questions.)
- What is my style (There’re only 2 styles, either PB(pullback) or BO(Breakout)
- Exit (with profit)
- Exit (with loss)
- Method of the trailing SL(Stoploss)
- Precaution of the RE(Re-entry)
- Is there an unanswered question left there?
If these questions are answered; let’s grab or open the calculator and size the position.
Under the normal situations risk can be max %5 for a transaction and reward must at least 2.5 times bigger than it. (If at least 2 times consecutively loss happened then as a defence mechanism we’ll reduce the percentage of our risk from %5 to 2.5 or 3 till we get a real good trade. Yes, remember our priority is to stay in the game longer and our secondary goal is to make good profits.
I will share my first 40 trades with the S&D zones we used behind it simultaneously in here so we can measure the win rate.