How to make good trading records (II)
read:2023/2/25 13:02:29
Entforextradingaccountsregistergforagoodliving.com">forex trading accountsy triggersEntry triggers tell you when to "fire" Entry triggers tell you when you should enter a forextradingaccountstype when you enter a potential trading area that is, your specific entry technique Since you have determined where you should enter a trade, you have to Decide how to enter the trade Are you just entering the trade blindly? If youre crossing the street, do you simply walk across it? Unless you cashback forex to get run over by a car you certainly want to look around first to make sure its "safe" This also applies to trading before you enter, you want to make sure its "safe" (i.e. a high probability trade setup) Entry techniques will keep you away from those you failed to anticipate in the potential trade area. Youll want to make sure its "safe" (i.e., a high-probability trade setup) Entry techniques will keep you away from trades that you werent able to anticipate in the potential trading area Suppose theres a bearish divergence in your potential trading area and youre short without thinking? Or do you wait until the price moves to a major resistance level? Maybe you even have to wait until the reverse candles are flashing one by one before making a decision? Dont wait until ...... you go short now and then find the price climbing upward and finally stop out Just because you find a good trading area doesnt mean you can enter at the right time Good trading techniques ensure that you dont take advantage of good trading opportunities Again, take screenshots of your charts and note your entry triggers Remember to take a good trade on your charts. nbsp;Remember to combine good entry triggers with good potential trading areas Moving average crosses are a very popular entry technique, but if you dont take into account the factors in the area youre entering, youre likely to lose a lot of money Use entry triggers as a stand-alone technique to deal with disaster Make sure you know whats going on around you Dont choose to use a knife in a gunfight Be a weapon or, boy, dont bring a tennis racket to use in a baseball game Position sizing This is simple based on the risk management rules you set in your trading plan, you have to determine the size of your position This lets you know what your maximum risk is How much are you willing to risk in each trade? 1%? 2%? 5%? 10%?! 20%?!!! Or will you bet your life on your family?！！！！！ Well do it bet on your life Dont be stupid! Dont bet your life! Arent you paying attention? You want to be a trader, not a gambler! Position sizing is important because it keeps your account in good shape and gets you ready for the next opportunity Its important to keep track of your trade sizesTaking position sizes into your journal allows you to know whether youre comfortable with larger trade sizes or whether you prefer smaller trade sizes while maintaining larger stop loss settings Trade management rules Before Before you consider entering a trade, you should have a game plan The game plan tells you how you will manage that trade, whether it will benefit you or bring losses Entering a trade is easy, it is when you leave the trade that you can determine whether you will profit or lose Two traders, Zhang San and Li Si, may have made the same trade but with very different results Zhang San benefits from the trade because Zhang San has a different view of his If there is a loss, he knows when to stop and leave with a smaller loss, while Li has no plan. He does not know what to do when the price is very unfavorable to him and ends up losing all the money in his account It is important to determine how you will trade before you enter the trade. nbsp;When you enter a trade, you should already have thought about how you want to deal with the possible outcomes each possible outcome try to take into account every possible variable and decide in advance what you want to do during the trade, you want to be a cold-blooded, ruthless execution machine you want to become inhumane Spock (Spock) You want to be a Vulcan-like trader All decisions are made well in advance of the trade You have foresight This means youre not in the trade yet! When you get into a trade, you just have to look at what youve written down This rules out all decisions made on a gut feeling If you start trading, you already know where your initial stop loss should be set, what your target is, whether you should try to change your stop loss, when you should leave the trade early, etc. Lets say youre in the middle of a trade and you get a surprise test, and youre asked. "What do you want to do if the price moves this way and that?" You want to be able to answer that question immediately, without thinking, in the middle of every trade Your trade management rules should be set up well in advance, before the trade starts In a trade, you never want to think "What am I doing now?" The decision to do these things must be made before the trade Trade review Reviewing means looking at what happened before When youre done trading, its tempting to call up your buddies, dance, and drink some wine, but its important to look back at how your trade went, whether it was a profit or a loss You want to look back at the whole process and You can ask yourself the following questions: How did the trade perform? Is the size of the position commensurate with the risk-reward? Or was it too big? Or too small? Could you have entered the trade at a better level? What tools might you use to improve the timing of your entry? Are you patient enough, or are you in a hurry and think you wont get another chance? Are your gains realistic, or are they unrealistic? Does the market agree with your level of profitability? Did it not, or did it happen to be at the level you wanted? Does the market agree with your stop loss settings? Not achieved, or just at the level you want? What news and events have moved the market in this direction? Have answers to improve your position sizes and order settings How well did you manage after you started trading? Were you able to actively monitor the market after trading began? If so, how did you do? If not, why not? The answers will reveal how much time and energy you are able to devote to trading Have you been adjusting your trading plan during the trade? Have you taken profits? Did you end the trade as planned, or did the market outperform your expectations? Based on your answers, you will know the role your emotions play in trading and the extent to which you can abide by your principles as a trader Although you want to talk to your friends about your thoughts and vent your emotions, you are better off keeping them in mind You might bore them to death They dont want to hear you complain What improvements can you make? What steps will you take to improve? This is your chance for self-improvement. Dont just write down vague words of regret, such as "I want to take longer profits," or "I want to stop more quickly," or "I want to be more disciplined. "These are useless nonsense Find out what specific steps you can take How do you want to extend your profits? Will you research how to pick better profit targets? Do you know how to not panic if you find a decrease in profit? There are no right or wrong answers in the review processBe honest with yourselfBe specific otherwise you wont have an upgrade as a trader Did you execute the trade according to the trading plan? Dont be dismissive of this question If you failed to execute your trades as planned, either you cant discipline yourself well or your trading plan is faulty In either case, you have issues to address