Trading SECRET: How to Enter & Exit like a Pro
Over the past five years of trading, I have recognized the importance of continuously critiquing myself and my trading strategy. I diligently monitor my performance on a daily, weekly, monthly, quarterly, and yearly basis. Here's a concise list of the rules I have followed prior to entering and exiting a trade:
✅ Entry Rules
Ensuring that the stop loss is positioned beyond the strongest support or resistance line.
Staying disciplined and adhering to my trading rules.
Assessing the risk/reward ratio and confirming its acceptability.
Double-check my entry, stop loss, and target position for accuracy.
Considering any potential news announcements that could impact the trade.
Evaluating the bid/ask spread to ensure it falls within the normal range for the specific currency pair, trading session, and time.
Verifying that I am not risking more than my agreed-upon 1%.
Taking into account correlation and avoiding trades that contradict my existing open positions.
Confirming that the market exhibits sufficient volume and liquidity.
✅ Exit Rules
Evaluating if the market has behaved as predicted and staying on track accordingly.
Assessing if the trade has reached a support or resistance line.
Reviewing whether the stop loss has been placed too far away or too close.
Considering if I am exiting the trade prematurely.
If unsure about the trade, exiting immediately.
Exiting immediately if I acted impatiently and entered the trade prematurely.
Identifying any upcoming news events that could impact the trade.
Observing if the trade is changing directions.
Reminding myself not to take profits too early, avoiding exiting before reaching the target line.
👉 I often receive inquiries about trading entries. Therefore, I'm sharing a few entry strategies that you can incorporate into your own trading:
Range Fade: This strategy involves buying at the range bottoms and selling at the range tops. The risk-reward ratio may not be ideal for many traders, given that the range is usually small. However, by placing the stop loss a few percentage points beyond the range, you can maximize the ratio.
Reversal: This entry approach involves entering at the most recent extreme or key level. While this method is quite popular, it often goes against my first rule: "never fight the trend, he's your friend." However, I do consider multi-day/week key levels in my ideas.
Breakout: This strategy involves entering a trade as the price breaks out of a range or pattern. It is a reliable option, especially for beginners who are keen on identifying repetitive patterns in the market. For example, you can sell at the neckline of a head and shoulders pattern and profit from it. However, it's important to note that the more complex patterns you observe, the fewer people are likely to use them, which may reduce their significance.
Pullback: This entry approach involves entering a trade after a minor reversal or retest. Statistically speaking, this is one of the most frequently used entries in my trading. It is a simple method that allows you to follow the trend. Identify key points, consider Fibonacci levels, and ensure it's not a complete trend reversal. Although you may miss out on a few percentage points of profit using this approach, it can positively impact your long-term profitability.
THANK YOU, MY LOVELY FOLLOWERS, FOR TAKING THE TIME TO READ. ❤️
✅ Entry Rules
Ensuring that the stop loss is positioned beyond the strongest support or resistance line.
Staying disciplined and adhering to my trading rules.
Assessing the risk/reward ratio and confirming its acceptability.
Double-check my entry, stop loss, and target position for accuracy.
Considering any potential news announcements that could impact the trade.
Evaluating the bid/ask spread to ensure it falls within the normal range for the specific currency pair, trading session, and time.
Verifying that I am not risking more than my agreed-upon 1%.
Taking into account correlation and avoiding trades that contradict my existing open positions.
Confirming that the market exhibits sufficient volume and liquidity.
✅ Exit Rules
Evaluating if the market has behaved as predicted and staying on track accordingly.
Assessing if the trade has reached a support or resistance line.
Reviewing whether the stop loss has been placed too far away or too close.
Considering if I am exiting the trade prematurely.
If unsure about the trade, exiting immediately.
Exiting immediately if I acted impatiently and entered the trade prematurely.
Identifying any upcoming news events that could impact the trade.
Observing if the trade is changing directions.
Reminding myself not to take profits too early, avoiding exiting before reaching the target line.
👉 I often receive inquiries about trading entries. Therefore, I'm sharing a few entry strategies that you can incorporate into your own trading:
Range Fade: This strategy involves buying at the range bottoms and selling at the range tops. The risk-reward ratio may not be ideal for many traders, given that the range is usually small. However, by placing the stop loss a few percentage points beyond the range, you can maximize the ratio.
Reversal: This entry approach involves entering at the most recent extreme or key level. While this method is quite popular, it often goes against my first rule: "never fight the trend, he's your friend." However, I do consider multi-day/week key levels in my ideas.
Breakout: This strategy involves entering a trade as the price breaks out of a range or pattern. It is a reliable option, especially for beginners who are keen on identifying repetitive patterns in the market. For example, you can sell at the neckline of a head and shoulders pattern and profit from it. However, it's important to note that the more complex patterns you observe, the fewer people are likely to use them, which may reduce their significance.
Pullback: This entry approach involves entering a trade after a minor reversal or retest. Statistically speaking, this is one of the most frequently used entries in my trading. It is a simple method that allows you to follow the trend. Identify key points, consider Fibonacci levels, and ensure it's not a complete trend reversal. Although you may miss out on a few percentage points of profit using this approach, it can positively impact your long-term profitability.
THANK YOU, MY LOVELY FOLLOWERS, FOR TAKING THE TIME TO READ. ❤️