A Traders daily plan 3
in this segment of the trading education I will point out a few things to do prior to the market open/time segment to be traded
top down means you always want to prioritize by importance and value what you are focusing on
check your bookmarked internet sites for news,roll overs asf
determine your exposure size in regards to shares/contracts etc based on your money management strategy-I mentioned here the no more than 2% of total capital rule-that's based on the principle that you will statistically have a very high probability of 13 losers in a row in a 1000 sample size which would result into a 25% draw down which should be the absolute max in a healthy equity curve based on the principle that a 50% loss requires a 100% win for only to break even-...
the probability quality of your trades should also determine size so quantify your trades into how good they perform statistically and adjust size
as a trader you are nothing else than a casino owner who has his odds stacked into his favor you can do this with a fundamental approach or a technical one or a synergy of the both I will elaborate in the next post on various technical tools as listed below
one imperative point to be made is that it is essential to know prior to executing a trade where your exits are-never take a trade without defined rules of a refined exit strategy
this implies a chosen time frame
once that is clear you have a time frame to trade in a time frame below that where you have your setups and an ever lower time frame for execution
resulting you always want to know not only what your competition in your time frame is up to but also what market participants do a couple time frames higher than your time frame and a couple time frames lower
for example: lets say you are an intraday trader that always is flat at the close of the market and you are trading 15 min turning points than your setups would come from 30 or 60 min charts with your entry time frame being a 15 min chart and your execution time frame being a 5 min chart-hence you would also want to be aware where scalpers are on a 1 min chart and still want to make sure if you have important levels or otherwise point of interests for larger time frame players on 4hour or daily charts.
There are various ways trading outside chart representations based on time but the general principle stays the same
markets are in alignments with other markets so the same principle iterated about time is also to be employed in regards to other markets
in short anything that stacks ones odds is of value
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NFA and CTFC Required Disclaimers: Trading in the Foreign Exchange market is a challenging opportunity where above average returns are available for educated and experienced investors who are willing to take above average risk. However, before deciding to participate in Foreign Exchange (FX) trading, you should carefully consider your investment objectives, level of experience and risk appetite. Do not invest money you cannot afford to lose.
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CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAN ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
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