Hi there FF members,
i have quite recently embarked on this journey of getting to know the forex, cfd and commodities market (gold and oil so far) anyway according to my reading, i need to create a trading plan, a set of questions to answer before entering as well asa set of rules to follow. so basically i'm looking for any feed back on what i have come up with so far.
so far my biggest weakness is interfering with winning trades. so my hope is having a firm set of rules and procedures in place will help me leave things alone, at least to stop taking profit early and only letting the losers get stopped out.
Rules to Enter a Trade and Questions to Answer Before I Enter
1. What is the over all,big trend? (always check larger time frames for the big trend)
2. Do I have a signal, i.e. entering pattern, at an order flow area with a confirming candle set up?
3. What price will I enter the trade at?
4. what is my stop loss, why?
5. what is my profit target and why?
6. what is my total risk to reward? is it at least 1 to 1 or more?
7. which entering pattern am i using to confirm the trade
8. what candle stick formation additionally confirmed the trade for me?
9. does the trade respect the order flow zones?
10: check currency strength readings additional confirmation
11. check the volume to see what is backing the move
12. once trade respecting all the above is set, don't touch it, unless something has happened to invalidate my analyses
13. if the set up you expected happens don't hesitate, enter 2 positions so you can take profit at 1/1 with 1 position, let the second position go to TP 2 or even stay in long term if there is a major trend.
14. move stop loss to break even and then to profit as soon as is safe without risking the trade
Theo's Patsios questions to answer before entering a trade:
What needs to happen for you to enter a trade?
Why would you consider buying or selling in a particular price area?
What would be sufficient evidence that you are not alone?
When will you pull the trigger?
How you will handle the risk:reward element?
Where will you put your stop loss and why?
What will your take profit be and why?
What is the minimum risk:reward ratio you will accept?
How will you manage the actual trade once you are in?
When will you move your stop loss to break even?
Are there any situations that may warrant moving to break even sooner?
Will you use a trailing stop and how?
What will your lot size and account management be like?
What percentage of your account will you risk on each trade?
Will you consider some trades more probable than others and risk more?
Will you consider some trades less likely than others and risk less?
edited to add: updated the list with member feedback
i have quite recently embarked on this journey of getting to know the forex, cfd and commodities market (gold and oil so far) anyway according to my reading, i need to create a trading plan, a set of questions to answer before entering as well asa set of rules to follow. so basically i'm looking for any feed back on what i have come up with so far.
so far my biggest weakness is interfering with winning trades. so my hope is having a firm set of rules and procedures in place will help me leave things alone, at least to stop taking profit early and only letting the losers get stopped out.
Rules to Enter a Trade and Questions to Answer Before I Enter
1. What is the over all,big trend? (always check larger time frames for the big trend)
2. Do I have a signal, i.e. entering pattern, at an order flow area with a confirming candle set up?
3. What price will I enter the trade at?
4. what is my stop loss, why?
5. what is my profit target and why?
6. what is my total risk to reward? is it at least 1 to 1 or more?
7. which entering pattern am i using to confirm the trade
8. what candle stick formation additionally confirmed the trade for me?
9. does the trade respect the order flow zones?
10: check currency strength readings additional confirmation
11. check the volume to see what is backing the move
12. once trade respecting all the above is set, don't touch it, unless something has happened to invalidate my analyses
13. if the set up you expected happens don't hesitate, enter 2 positions so you can take profit at 1/1 with 1 position, let the second position go to TP 2 or even stay in long term if there is a major trend.
14. move stop loss to break even and then to profit as soon as is safe without risking the trade
Theo's Patsios questions to answer before entering a trade:
What needs to happen for you to enter a trade?
Why would you consider buying or selling in a particular price area?
What would be sufficient evidence that you are not alone?
When will you pull the trigger?
How you will handle the risk:reward element?
Where will you put your stop loss and why?
What will your take profit be and why?
What is the minimum risk:reward ratio you will accept?
How will you manage the actual trade once you are in?
When will you move your stop loss to break even?
Are there any situations that may warrant moving to break even sooner?
Will you use a trailing stop and how?
What will your lot size and account management be like?
What percentage of your account will you risk on each trade?
Will you consider some trades more probable than others and risk more?
Will you consider some trades less likely than others and risk less?
edited to add: updated the list with member feedback