Trades Prepare for Every Trades: Plan the Trades and Trade the Plans
Step 1: Analyze the pairs
Identify the trend: up, down, no trend by using chart patterns, indicators, Japanese candlestick patterns, and Proven Trading System.
Step 2: Trades Setup: Stoploss, Entry, Target Price based on the analysis.
- Using previous Top, Bottom, Fibonacci Level, Pivot, Trendline for Stoploss Price, Target Price.
- Using Stop, Limit Orders and RSI Indicator of lesser Time Frame (Trade H4, use H1)for good Entry Price .
- Calculate the Trade's Size = (equity x %risk) / (abs(entry price - stoploss price) x 10^5) (k lots)
Step 3: Money Management
-Determine the Risk for each trade:
Long Term (Daily, H4 Chart): < 2% of equity
Short Term (H1, M30 Chart): < 4% of equity
Step 4: Trade Management
-Watch the indicators, Proven Trading System if the trend follow the plan or not.
-Never move Stop-Loss if the plan is wrong, Accept Plan. The Stoploss was planning for such case.
- If the trend follow the plan: Move stoploss to break even, or Lock in profit.
Step 5: Always Have a Journal/Record for Each Trade
- Learn from the mistakes.
- Have a Journal will lead me to a Discipline Trader.
Merry Christmas and Happy New Year.