Trading SECRET: How to Enter & Exit like a Pro

a year ago

Over the past 5 years of trading. It has been a crucial step in my development to constantly critique myself and my trading strategy. 1 constantly monitor my performance on a daily, weekly, monthly.quartley and yearly timeframe. Listed below is a small simple list of rules that i have used in the past prior to entering and exiting a trade.

Entry Rules

1. Is the stop loss placed past the strongest support or resistance line?

2. Am i following my trading rules?

3. The risk/reward is acceptable

4. Have I double checked my entry/stop loss and target position?

5. No news announcements that will affect my trade?

6. Bid/ask spread - Is it in normal range for this pair, this session, this time?

7.AM i risking more then my agreed 1%7

8. Correlation - AM i trading against myself with already open trading trades?

9. Does Market has enough Volume and Liquidity?

Exit Rules

1. Has the market behaved as predicted? If so, stay on track

2. Has the trade reached the support or resistance line?

3. Has the stop been placed too far away? or to close?

4. Am i exiting to early?

5. If unsure of trade exit immediately?

6. If i was impatient and entered trade exit immediately?

7. Is there an upcoming news event that will affect my trade?

8. Is the trade changing directions?

9. Don't take profits to early!! Are you exiting before your target line?

I get asked all the time about trading entries, so here you are, these are entry strategies which you can use in your trading:

-Range fadde is when i buy the bottoms and sell the tops of the range. Usually the box/rectangle isn't large, so the risk-reward ratio is just not there for many traders. However, you can definitely put the stop loss a few % out of the range and maximize the ratio.

- Reversal is an entry at the most recent extreme, key level. Quite popular approach, but personally, it usually goes against my rule #1: "never fight the trend, he's your friend". I do; however, look out for multi-day/week key levels in my ideas as well.

- Breakout is an entry as the price breaks out of a range or any pattern. Very reliable option for beginners that are obsessed with finding repetitive reoccurrences in the market. For example, you can sell at the neckline of head and shoulders pattern and successfully profit from that. It is important to keep in mind that, the more complicated patterns you "notice", the less people use them, thus, devaluing the importance of it.

-Pullback is an entry after a minor reversal or retest. Statistically speaking, this is one of the most frequent entries utilized by me. It's simple and you still follow the trend. Draw your key points, look for proper Fibonacci levels and make sure it's not a complete trend reversal. Of course, you'll miss out on a few % profit this way, but this might change your long-term profit statement.

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