Trade entry rules
For a perfect system rules are very necessary. Making use of a Rules Based Trading System has numerous benefits. The system will give you a firm set of setup rules, which you should follow, long before entering a trade or even worse, trading by gut feeling. It gives you a base for the reliable performance plus improvement. All that you have to do is to be well-organized and ensure that you follow the rules.
It is always best for you to trade in the direction of the market phase. With this you will become more sophisticated trader. Trading in the direction of market phase will give you an edge. This will also develop a precise trading strategies that perform great in specific market phases. Trading only with the current intra trend will allow high profit and low risk if the trend continues.
Trading entry rules
A method of trade entry which discovers high probability opportunities is always easier. The most excellent way of finding the prospect of a trading method, for you is to evaluate the number of the winning trades compared to the losing trades number, this will give you a winning percentage. You can read more about it in our review of the complete currency trader course.
Trading strong stocks in uptrend and weak stocks in downtrend results best for each currency trader. As the weak stocks are less risky when they are in short position and that is when you have the greatest possibility to profit because the market is in a downward trend. You will find it more beneficial to trade those stocks that have at least a moderate to high correlation. For a day trader this creates an opportunity, as you can isolate that which stocks are likely to provide you a better return.
For the part time traders it is best to Catch the Multi-Dimensional momentum. This puts the part time traders in place to catch the markets major moves. The multi-dimensional momentum means finding indexes, stocks or ETF’s having more than daily price and volume momentum. If you are a part time trader than you must firstly find the indexes and stock.
As markets always move in waves, you should always want to exit before a it occurs. The day traders must spend their as little time as probable in traders losing money to a substantial grade, as you have restricted time to capture the profits.
Whenever the market reverses you should step aside. As markets do not always trend, so the intra-day trends can reverse so frequently that an overriding direction is tough to establish. If the major highs plus lows are not being made its better for you to make certain that the intra-day movements within a range are huge for the prospective reward to exceed the risk.
You must step aside and do not trade when the price moves in a horizontal range. You have to realize the profits and should take them at or higher than the previous price high in an uptrend. On the other hand in a downtrend, profits should be taken lower than the previous price low.