S - SCRIPT(Stock/Commodity/Forex/Index)
R - REASON (There must always be a genuine reason to enter a trade)
P - PLAN (Prepare for both sides while doing homework)
S - STOP LOSS (It is compulsory & must be logical)
Q - QUANTITY (Position sizing is very important)
T - TIME
(give minimum 45minutes to a trade)
(You have to know your target. Take minimum 1:1.5)
stop loss is really important for all kinds of trader, without stop loss your trading condition as like a ship in an deep ocean without a rudder.
These are very valid points and for sure need to be in all plans. Constant evaluation is the key
Can you share some examples of how R and P are different?
I do like the acronym to keep it all in one place. How would you say it tho? Serp-squat? Ha!
The reason is the actual trade setup. For example, many traders look for at least three areas of confluence or at least a really strong signal bar.
The plan is the overall trading plan that tells you if this happens, then do this. It is the IF/Then statement that used to be so prevalent in trading strategies, yet it is often missing in 2022.
Thanks for that Steve. By signal bar, is that related to price action and candlestick patterns, or do you mean like single bars?
Yeah. A signal bar is the candle or group of candles before the entry candle where you take the trade. Hope that makes sense.
Sure does. TY! Where did you learn your price action chops?
I am a student of Al Brrooks (not affiliated in any way). You can go here to learn more. I highly recommend his FOREX course.
But first, be sure to filtch off all of his free stuff . He’s got a lot of it!
I keep hearing about this dude and keep forgetting to check him out! Thanks again. Added him to my notes, so now I won’t forget!
Had a look at the course. Looks really detailed. It’s like 100 hours! Did you watch all of that?
$399 is kinda steep for me. Will need to check the couch for some change.
Sory top get back to you so late. I didn’t realize it had been five days.
Anyway, did you check to see if he was running a special offer? I think you may still be able to get $100 off, not sure, though.
Anyway, it is worth every penny. However, I goofed up by buying both courses. I should have just stuck to the Forex course since they are almost identical.
Like you said, it is very detailed. But you do get access to the vids for life, which is pretty cool.
These are all excellent points that should be incorporated into the trading plan of any serious trader.
What’s your average stop loss? Tell us more about your risk management, which rules do you use and when you change them?
Still looking. Pricey, but maybe I need to put more skin in the game.
Both so important and probably the most important things in my opinion. Once they’re sorted it helps everything else
This is a sound strategy. All of the points you’ve raised are valid. Stop loss, on the other hand, is absolutely essential for all traders.
Trading skill is very much important; if you are trading with an ordinary trading skill, then you’ll open tons of wrong trades!
Yes but we would like to hear precise trading settings because this is what really matters. For example I use 1:100 leverage with Hotforex and simple 3:1 R/R with 20 pips stop loss max. Basically it can be considered scalping but I avoid trading during high volatility mostly Asian session and sometimes I stay in a position for 10-20 min.
No doubt, Stop Loss is such an important trading tool. In my live trading, I always use the stop loss trading tool since I know the real value of money management!