Tuesday, October 11, 2011

Aiming for a better trade

This post gets its ideas from the SMB Training Blog . You should read their full post. The basic theme is this: what factors contribute to a well made trade? A well made trade will not always result in a profit. But, it provides satisfaction to the trader for correctly identifying, then executing the trade. This is what the blog says:

  • Having a time stop – scratch a trade that does not work for me after a given period of time
  • Being ultra-selective – trade only Radar/In-play stocks, which haven’t moved out of their ATRs, and still have rooms to go
  • Covering risks – initiate with 2 lots on higher R/R setups, and covering risks with 1 lot into the next up move / down move
  • Internalizing “second rat gets the cheese” – it is okay to miss the first 20c; you don’t have to be the 1st one in… let them do the battle, confirm the price action, and then I enter with more confidence

My Notes: Being selective in picking trades is probably the main cause of better trading – in choppy environments as this.


Nikhil said...

do you follow Point and Figure charts also? Did you try this type? what's your experience? with them?
Are not they less 'noisy' than normal bar/candlesticks charts?

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