Probability

Discussion in 'Trading' started by Spectre2007, Jan 18, 2007.

  1. With any disciplined approach, or professional trading, a regimented approach needs to be taken to trading if one wishes to survive in these markets.

    A regimented approach, means a set of conditions need to be met before a trade is executed. Trades must always be executed with predefined stop loss (SL) and take profit (TP) targets in place.

    What set of conditions increase the probability of a trade going in your favor?

    1) trend weekly/daily
    2) only enter directional trades with trend
    3) calculate range band from previous timeframes
    4) let volatility trigger your entry at the extremes of range
    5) have news in your favor
    6) have price gaps in your favor
    7) wait for news to be digested
    8) 1% stop loss of acct equity at the most, alter lot/position size
    9) calculate the average up or down move per day for previous weeks
    10) have previous directional trades going in your favor
    11) have either the closest support or resistance fail in your favor

    If most of these conditions arent met, then trading is just gambling, might as well go to Vegas.
     
    beginner66 likes this.
  2. Heres a trade sheet to make it regimented.