Thursday, April 23, 2015

Correct entry and exit from a trade


In this stage you are going to do the last and most important thing. After
you learned to do it in the best and most accurate way, you will start
making money with any strategy. After the long and hard training we've
done, according to my work plan, you are disciplined and work like an
emotionless robot in the market. That's exactly how we should act. You
enter a trade and close it according to the rules, and leave your emotions
on the outside.
In this stage we collect a minimum of 100 examples that show a potential
trade setup, entrance and closing points. We should follow through all the
different trade stages, from the beginning to its end. Actually, we are
going to have a few screen shots for every trade: preparation, entrance
and close. After you collect all the examples, you should analyze it over
and over again. Only then you can go to your demo account and start
going through all the stages together. Only when you feel that you do this
automatically you can move to a live account and your profits will be
immediate.
After you collected all the examples, prepare a new trading journal and
start documenting the number of profitable trades, number of pips you
earned, loosing trades and amount of pips you lost. Did you sum it up
with a good profit? Excellent! This strategy is great, you can use it.
I'll continue with the simple example I introduced earlier. I will show all
the stages in several examples. Then you will understand exactly what I
referred to.
So, let’s start.
Example 1:
The trade’s setup:
 
 
 
 
 The trade’s entry point
 
 
 The trade’s closing point
 
 
 
And now, the last stage: sum up the trade on our trading journal.
The trade profited 2 times more then the stop loss we set, according to the
rules of this strategy.
I enter +300 pips on the profitable trades’ column.
Let's see another example:
Example 2 – trade's preparation:
 
 
 
Next stage is executing the trade:
 
 
 Now we should exit the trade with a profit or a loss:
 
 
 
Now, all that is left for us is writing down our conclusions. This trade has
been closed in stop loss (above the candlestick that broke the support,
according to this specific strategy). I turn to my trading journal and sum
up the trade’s details on the losing trades’ column. I enter minus 70 pips.
I do the same for as many trades as possible. Numbers are impressive?
Excellent! The strategy is very good for you and you understand its rules!

 

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