Define your setup thoroughly before trading it.
Think a lot at setup selection stage. I you think through your setup then trading it will be easier. If you do not have good setup stop trading and search for good setups first. Once you have good setup your trading will improve.
Think about what market structure this setup exploits when selecting setups. If there is no structural phenomenon it exploits then , it will not work.
Setups that people have used for centuries are:
- momentum burst also called impulse moves
- Trend failure
- Anti Trend swing
- pullbacks also called mean reversion trades
- range
- Trend transition setups
- trends
- pairs
There is lot of information about these setups in public domain.
1 comment:
A simple but critically important point:
'...Define your setup thoroughly before trading it.
...If you think through your setup then trading it will be easier. If you do not have good setup, stop trading and search for good setups first...
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