How to be a LASER Trader!

Rinse and repeat.

That’s it…

It’s one simple little acronym you’ll never forget…

Ready?

LASER your TRADES

1: Look

The first thing you’ll need to do, is to go through your watchlist very quickly.

A watch list is a list of markets you’ll LOOK through when finding trades.

These markets can range from anything including shares, indices, commodities, currencies and crypto-currencies.

When you have your watch list, you’ll go through the list and get a feel for how the markets have moved for the day.

Example:

Before I trade anything, I LOOK at the JSE All Share 40 stocks that are in my watch list.

I then run through them briefly to see how the markets are performing.

2: Analyse

The second round of going through your watch list, is where you’ll look for specific trading setups.

Whether you trade using price action, patterns, indicators, volume etc…

This is where you’ll ANALYSE the charts individually.

Also with this step you’ll write down potential trades that are lining up.

3: Setup

The third step is to go back to the markets that you’ve written down – which you’re looking to trade.

You’ll then do your simple trading calculations and place your chart SETUPS so you can see where your trading levels are.

EXAMPLE:

If I see a trade that’s lined up, I’ll draw horizontal levels showing where my entry, Stop loss (risk) and take profit (reward) levels are…
I like to use:

Blue for entry
Red for stop loss
Green for take profit

4: Execute

You’re ready to JUST TAKE THE TRADE!

And then you’ll place your entry, stop loss and take profit levels. You’ll choose how many CFDs you’ll need to buy according to your money management rules.

And then hit trade!

5: Record

As soon as you’ve successfully taken the trade, head over to your journal (excel document) and record your trade transaction.

That’s how to be a LASER Trader…

And on a daily or weekly basis, you’ll repeat those steps…