Trading Plan

Been working at putting my trading strategy onto paper for the past week, this is what has been done so far.



The Basis of my trading strategy is trading the equilibrium point of price waves (Fractals). Fractals are created within a trend as investors and traders take profits (or losses) which causes the price to trend in waves. As the main goal for any trader is to cut risk and create consistent profits with minimal losses I ignore trying to catch the beginning of a trend. The beginning of a trend although more profitable when you are right is very risky. This is why I wait until the first fractal has been made before entering a trade. this ensures that I am with the market sentiment and not against it. To further help this, I took notes from a Long time trader.

"When Price advances, think sell, this will stop you from buying at the top. You won't enter a short either because that would void the bias. Enter the market long at the bottom of a replacement."

So we have gone over 2 big parts of trading so far. A: Trends occur when market sentiment changes, and B: As buyers and sellers create transactions, it causes waves in price action.

Now As markets are never truly the same day after day, it is important to have a strategy that is quickly adjustable to the current market situation. I personally feel that this ideology keeps your mind focused on what is actually happening and filtering all of the noise out.

Next post will be on Fundamental screening and planning the day ahead.