How to become a successful trader?Part 2 : A clear plant

I believed most of the unsuccessful trader doesn’t have a clear plant.

So what is the clear plant?

A clear plant mean you have a plan for your trading. It was called a clear plan when it have these condition:

1/ What is the trading products i should trade?

Firstly, you have to know what is the products you want to trade and please follow on that at least 6 months.

Yes, you are not wrong, i wrote 6 months! Not 6 days or 6 minutes!

Why? Because you have to know and clear how the momentum of that market acts. It was called as price action.

Each market they have a different price action. You have to know the models, how it movement before you make your trading decision.

For example : i am trading gold, and i only focus on gold and dollar index. I followed it every single day and only open a position when it is in my trading range. This meant when the price movement in my familiar range , i will take an action. If it is not my trading range , i deny to join the market.

2/ Know about your strategies!

You have to know very clear about your trading strategies. What is it types ? Breakout? Trend trading? Intraday traders? Swing traders? Or scalping.

I believed most of traders thought scalping is very hard and high risk! But in my point of view, scalping is low risk. Because my stoploss is very near my entry point, my target can be reached in just 1-2 hours. But you have to sacrifice your win rate, because the exit rules is very easily to hit. But that is my strategies , if i wrong, it would exit immediately.

I am the person don’t like to hold the pain so i decided to cutloss and minimize the risk.

When you are a swing traders, sometimes you might have to wait over a month to know you are get in a wrong position.

3/ What is the exit rules?

4/ What is the entry rules?

Why did i write the exit rules before the entry rules ? Because before you open your orders , you have to know what you have to pay if you wrong.

I am not the characteristic of gamblers , i am afraid black swain days. So i never open a trade if my Reward/ Risk lower than 3. This mean i may have a losing streak 3 orders but i only need to win 1 order and it will recover everything i loss.

So that is 4 clear points you have to answer before you open a trade. I have to do it everyday. It have helped me survive and earned from the marker for 10 years.

Thank you for reading my topic. If you like my topic , please buy me a cup of coffee , it will make my day for sharing the experience.

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