Do not let your fire go out, spark by irreplaceable spark, in the hopeless swamps of the approximate, the not-quite, the not-yet, the not-at-all.…The world you desired can be won. It exists, it is real, it is possible, it is yours.
"Ayn Rand"
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1. Your personal skill assessment- Are you ready to trade real money? Why are you ready? Can you follow your plays without hesitation? Have you defined the criteria in writing of when you will start trading with real money?
2. Mental preparation- How do you feel? Are you rested? Have you had any mental or emotional traumas recently? Under what mental and emotional conditions will you NOT trade?
3. Determine Risk Level- How much of a percentage of your account equity are you going to risk on each trade? What is the most you can lose per month before you MUST stop trading? At what point, what is the criteria, do you increase the percentage you risk?
4. Goal Setting- What are your weekly profit goals? How do you determine your price targets before you enter the trade? Setup a monitoring method to track your profit target success. What are your goals short term and long term? How do you track the progress of those goals?
5. Trade Analysis- What is you pre trade analysis process? Do you have a methodical process in place for completing this? What is your post trade analysis methodology? Do you have a way to monitor your psychology during a trade? Have you developed a trading play book?
6. Homework- Have you developed a way of methodically doing your homework and research. How do you plan to document it? Have you outlined a continuing education plan? Do you have a trading library? Have you scheduled time to do your homework and research?
7. Busniess Plan- How much is it going to cost you to get into trading? What are your monthly expenditures? How much are you going to allocate to education? When would you reasonably expect to break even? What will you do with your profits? Do you have rewards in place for yourself when you meet certain stages of your plan?
8. Office Setup- How is your office setup? Do you have all the contact numbers to your brokers and internet service providers handy? Do you have a backup charting service (you can use a free one)? Do you have anti-virus software on your tradestation and do you run it every day? What do you do if your tradestation crashes in the middle of a trade? How do you plan to recover from a tradestation crash?
You should take these eight areas and add as many details to your trading plan as possible. The more complete your trading plan is, the clearer the path will be that you need to follow. You should revisit you trading plan about every three months to see how you are following it. Take a lot of time to complete your trading plan thoroughly it will benefit you more than you know.
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Trading is probability game. We need statistical edge to make profit in long run. To get statistical edge we create trading system. In simple term system helps us to win more trade and lose less trade (make more profit and lose less money). Creating and adopting other expert trader system it not always work for us if it is so lots of trader become successful with in short period of time. So many way of trading exist in the trading world like there are traders they don't even watch chart to trade, there are trader who use naked chart, there are trader who use Moving average, there are trader use market profile and so on.
One example is like this - Mr X is new trader he learn lots of thing about forex trading from different website. Now he know that he need to develop a trading system that work for him. He collect lots of system for different source in the web but he know that not all system is good and not all good system will work for him. He start trading with a system in demo account system contain one indicator call Pivot Point. after few day trading he say that the system is not that profitable its seems.
After few day he found a video where some one explain Camarilla Pivot Point work so well in 30 minute time frame. previously Mr.X traded 4 hour time frame now he become very interested in trading different set of pivot with different time frame, Mr.X learning curve start again. after few week trade he found the system work in certain condition of the market not always work he lose over all because he have to miss lots of good entry in 30 minute time frame. Now Mr.X come to know a expert trader Mr.Y he said to Mr.X Pivot is not good for trading at all. Mr.X stop trading with Pivot point. This cycle continue(System adopting and System dropping), I am not saying that system adopting and system dropping is always bad.
People say follow what's work for you. I can guarantee you if you don't do hard work in your system it will not work for you unless it automatic trading system proven profitable in the past and still work developed by other people hard work. Why do others give you their proven profitable automatic system that is big question.
We need to analysis our trading system whether it work in our trading time frame or not. But what will be our trading time frame and observe time frame? Good question I will answer it Future thread. In This Thread our Trading time frame is 4 hour (H4). It doesn't matter you use GMT time broker or GMT+2 or GMT+3 Broker. Our Observed time frame is Daily chart and 1 Hour chart.
Now how we test the system? in other words -How could we understand system work for us or not?
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There are 3 level system Testing we will use to train our-self.
1. Back test- See how system work in Historical market data or past data. which types of entry give use more accurate entry. Trading rules development with observation. Take screen short and write in screen short why your think this is good entry and your entry and exit rules.
2.Forward testing- after few week or may be months start trading demo with your developed rules see how you perform in real time trading where your don't know what will happen next. You just know your rules worked previously so well.
3. Expectancy Test- Expectancy test is your test how much understand the system and how much you'r expect form certain condition of the market, don't over or under expect from market. Trade with confident that your rules worked in the past and your already performed well with the system.
Ok enough knowledge distribution lets share a system that I am working on.
( Before start trading with this system take at list 100 screen short and write down your rules. share your rules so that others can learn and make comment your mistake )
Some Important topics and Ideas
1.Urban Myth: Entries Aren’t that Important here
2. an effective trader must account for three main areas of concern. here
3.What Kinds of Drawdown Should You Expect? here
4. Discipline here
5. Some things I have learned here
6.Money Management Technique Here
7.ADAPTING TO CHANGE here
8. Success in trading here
9. Indicators - Good Or Bad? here
10. few reasons of Failure. here
11. Developing a System here
New system Started here
General guideline Here
Attached File(s)
TMP.zip
791 KB
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1,816 downloads
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Uploaded Mar 17, 2017 1:55pm
Orders on chart active.ex4
24 KB
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451 downloads
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Uploaded Sep 26, 2017 5:09pm
MA provides the market's current direction and strength.