The secret: Trading is simple
The challenge: once profitable to atually believe you know what you are doing. This is very difficult considering how difficult it is to get actual statistics on what a good result is.
Those who are not profitable yet please try what you will find below before you decide to post an opinion.
Method:
1 - look at the chart
2 - decide which way price is going
3 - decide at which point on the chart you would admit you were wrong
4 - based on the above and the amount you are willing to lose on the trade calculate your lot size
5 - have you decided how far the price has potential to move in your desired direction?
6 - is the risk reward ratio satisfactory?
7 - once the above are in place you are ready to trade. Place your trade with stop loss and take profit.
8 - monitor trade at reasonable time interval and decide to either keep the trade or cut it.
9 - seriously review your trades.
10 - The moment you say the words " I hope that ..... " close the trade with the loss or profit and look for next trade.
The above are in my opinion the elements of all trading methods but are rarelly considered by potential traders. The result is that a simple job becomes complicated.
The challenge: once profitable to atually believe you know what you are doing. This is very difficult considering how difficult it is to get actual statistics on what a good result is.
Those who are not profitable yet please try what you will find below before you decide to post an opinion.
Method:
1 - look at the chart
2 - decide which way price is going
3 - decide at which point on the chart you would admit you were wrong
4 - based on the above and the amount you are willing to lose on the trade calculate your lot size
5 - have you decided how far the price has potential to move in your desired direction?
6 - is the risk reward ratio satisfactory?
7 - once the above are in place you are ready to trade. Place your trade with stop loss and take profit.
8 - monitor trade at reasonable time interval and decide to either keep the trade or cut it.
9 - seriously review your trades.
10 - The moment you say the words " I hope that ..... " close the trade with the loss or profit and look for next trade.
The above are in my opinion the elements of all trading methods but are rarelly considered by potential traders. The result is that a simple job becomes complicated.
