I feel that successful trading is achieved when the following 4 steps are followed on each trade: 1) Trade in direction of broader market (.i.e the direction of the higher timeframes) 2) Set a good stop (i.e if going long, the stop should be below support, if going short the stop should be above resistance. 3) Set target at next major support (if short) and next major resistance (if long). 4) Enter only at low risk. That means enter if and only if you can get in at a price that is relatively close our stop when compared to your target (i.e. risk/reward should be better than 1:1) In conclusion, I feel that if a trader follows these steps in the order above they won't go far wrong and have a good chance of achieving net profitability.
rules.... i could come and dismantle them one by one (except the stop part) but it's not about this.. it's about the fact that trading profitably is not related to a set of general truths... think about it.
Ok I see what you are saying. I should have wrote "4 simple steps of successful trend trading ". I agree that steps 1 and 3 don't apply to other methods of trading.
Given that you have not said "the ONLY path to successful trading" then I would agree with your 4 steps. regards f9
no really now... i realized this some time ago when i was exhausted with rules, formulas, systems, indicators... the whole lot... we are rationalizing too much on something that is quite irrational. be like water... read price and try to gauge the mood of the people that the market is made of... it's much better than any rules. the more rules/steps you put between you and your trading the more stiff you are and therefore you grow slower, you learn slower, you take losers that you could have avoided.... i say forget everything. spend a year or two watching pure price on a chart day by day on a 15min chart and you will train you gut to feel what is real. you won't be sorry.
4 rules for an ET thread 1) Split hairs to show everyone that you know more than the other poster 2) Contradict others, for the sake of contradicting - be a 'master debater' 3) Boast that you make more than everyone else, when you're really losing money, and use the grin or shades smily 4) Make sure the thread goes nowhere
I would never recommend that a trader focus on just one timeframe like the 15min, I feel that it is essential to get your trade ideas off of a higher timeframe before you look for a trade in the lower timeframe.