Article Only Take a Trade if it Passes This 5 Step Test

T2W Bot

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No matter which market you trade – stocks, forex or futures – each second the markets are open provides an opportunity to trade. Yet not every second provides a high-probability trade. In a sea of nearly infinite possibilities, put each trade you consider through a five-step test so you’ll only take trades that align with your trading plan and offer good profit potential for the risk being taken. Apply the test whether you’re a day trader, swing trader or investor. At first it will take some practice, but once you become familiar with the process, it takes only a few seconds to see if a trade passes the test, telling you whether you should trade or not.
Step 1: The Trade Setup The setup is the basic conditions that need to be present in order to even consider a trade. For example, if you’re a trend-following trader, then a trend needs to be present. Your trading plan should define what a tradable trend is (for your strategy). This will help you avoid trading when a trend...
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trendie

Legendary member
6,232 1,007
good article, as its aimed at beginners.
(wrote more relating to account risk, but managed to delete it instead of edit it!)
 

NVP

Legendary member
36,765 1,880
ok but not convinced on number 5

pretty solid for beginners .....

but re 5 .....how does anyone know where the price will go ? ........and if so why limit yourself with meaningless R;R targets ?

we are endlessly taught that bad traders cut winners too early ...so lets not encourage such behaviour ?

N

heres my 1 step rule ............follow your strategy rules 100%
 

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