This is a topic that I would like to start about “safe rules” you typically do to trade. For some people can be specific timeframes, indicators or even your own gut.
Share with us what makes you feel safe when you placing a trade.
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I am learning to become more patient, not to set my order for entry on the first breach of a price level, but to wait for a close beyond that price level - confirmation, or “break of structure” some people call it.
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I think how much money could I lose if my trades went against me. That way i’ll never blow my account.
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You mean risk management? For sure, that is something we all should have in mind when trading!
My safe rules is to always follow my process, which is a profitable strategy. The underlying key is to always aim to find positive probability trades on the right side of the market. .
Another rule is to always look for recent outside key reversal bars when I am about to pull the trigger. These are easily seen and suggest dramatic changes of buying or selling sentiment.
e.g. in an uptrend, beware of the latest candle printing a high above the previous candle’s high but then going on to close below the previous candle’s low.
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To always use my risk reward ratio and sl
I never trade without stop loss and take profit. I follow my trading plan and never make changes to it just because the market seems to have changed.