A trading method is a combination of rules to be followed in order to find entry and exit signs on your trades. Firstable you need to set up the rules to enter into the market. Some traders prefer to enter when the market has a high volatility so that they can reach their targets and just do not be there if a large movement is not expected in the short time. Others might prefer to do the opossite in order to do not feel sick and stressed or because they do not have clear where to establish their stop losses. The issue with a high volatility market is that if you have not experience enough it can destroy your trades in a very short time with not enough time to react. If there is a high volatility and you loss your money do not follow your feelings and double the amount you invested to get back your losses as soon as possible. The better is to wait for a new opportunity. Waiting is a good method to learn to control yourself and it should be mandatory to every beginner. Ones you decide what market conditions are best for you try to learn how to identify the optimal market conditions for you to trade. Also you need an exit extrategy and ones you have decide it do not wide your stop losts. Follow your method, practice on it doing back-testings and do not use your imagination to forecast where the price is going, just use your method all the time. To be honest it is not easy to control oneself when a lost comes, the better would be to stop trading if you are feeling out of mind and wait to other opportunity. There are a lot of theories about which stop lost or take profits to be taken, but you should use those which make you trust in your method and the only way is by practicing with it in the longest possible terms. It is helpful to write the method and read it at the beginning of each trading season and do not complicate it to much. I won't say the easier the better. It needs to be not to easy not to hard but the most important think is to be clear in it and follow it with no exception.

Good luck folks!!!
Translate to Inglese Show original