Wednesday, October 6, 2010

Flash Thought : Plan The Trade

Maybe some of you have already know about planning the trade. Here's what I was thinking about planning the trade.

I only trade wedge breakout, but from this single strategy, there're dozens of rules.
I planned like this:
What is the entry point:
- Wedge breakout, but the market was weak so I only trade if it failed once.

What happened if it's failed?
- I'll do the re-entry on the same pattern

What happened if it still failed?
- I'll wait for next setup or other currencies

Where is your Stop Loss?
- Maximum 10 pips or previous candle. If previous candle before breakout is more than 10 pips, then I will entry at better price

How much your losing streak?
- I'll stop after losing $500, hope not happened since it need more than 7 consequtive losses. If I was disciplined, the chance of busting $500 will be very rare since I trade 6 currencies at the same time. Some of them must move. If not, the market will ceased to vanish.

What is your profit target?
- Minimum 10 pips, depending market condition.

How is the review of your system?
- No single losing day if applied in last 10 days!!! That's how powerful my system is!! I was confidence with currency market since it's very dynamic. Don't really care about arbitrage.

What will you do if you still lose?
- I'll reviewed my trade diligently. Most of the time it's because disciplinary problem. I didn't see hole in my trading system.

How about CL and TF?
-I trade CL very careful and TF still miss a lot of trade. Not trade the TF before 10.00 am and for CL, have to be patient with unfilled order.

What is your confidence level now?
- Extremely high but in the right state. I have confidence in my system, not in my single trade. I have premium system, small stop loss, and great mental state. Just doing the plan, everything will be just fine :)

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