Thursday, April 23, 2015

Prepare the grounds for a trade


You’ve found an interesting strategy?
You have even seen examples of three amazing trades, each provided 200
pips.

This is great. However it doesn't mean that you understand what is the
right timing to enter a trade.
What should we do before we jump into the water?
You have studied a strategy. Excellent! Now, go to the chart and prepare
100 screen shots where you mark and name: "
pre-entry to trade”.
For example:
I'll choose the simplest strategy in the market – resistance or support
breaking.
This strategy’s rules are:
Mark last resistance level.
Wait until a candle breaks it and closes above it.
Enter the trade.
 
Mark last support level.
Wait until a candle breaks it and closes below this level.
Enter the trade.
My first stage is to mark last resistance level or last support level. That is
why, this is exactly what I am going to do:
Example 1:
 
Or:
 
 
In this example I found and marked last support level.
Example 2:
 
 
 
In this example I found and marked the last resistance level.
I keep doing this: I have to create lots of examples of support and
resistance levels and draw them on my charts.
In order to do this do the following:
1.prepare screenshots of all the examples you can find and mark them.
2. Go over them again and again until you see all the existing support and
resistance levels.
3. Open a demo account and draw a line on every support level and every
resistance level you currently see on the market.
After you finish with this stage, you will be able to go to a live account
and mark all the support and resistance levels you will see.
In the real system your nature will be to draw the resistance and supports
levels in the best way you can. It will push you to an excellent situation
because by then you will be already familiar with all the different types of
"pre-entry trade setups”,
according to your strategy. This is thanks to the
good preparation work you have done until you started live trading.
 
 
 

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