Design your own profitable trading system. The perfect trade entry exit points forex broker Every trader needs a trade entry system. In chapter 3 we covered the first fundamental step of trading, that is, to choose the market in which you want to trade.
I call this the universe of securities. So how do you choose from this vast universe? Trade entry rules are a stringent set of conditions that you develop, document and then apply, to decide when you are going to enter a trade. Like sifting through a bucket of sand trying to find pieces of gold, the same approach is used to reduce your universe of securities to a shortlist of those that meet your criteria. Developing your trade entry rules As in all aspects of trading, there are many theories on trade entry and how to exit trades. I believe the best way to approach entries should be simple, direct and leave nothing to human judgement. Every trade was heavily scrutinised and made according to his strict rules.
The students had to follow these rules or be dropped from the project. The fear of loss forced the traders to follow the system no matter what. In the real world, most people would not have the discipline to do this. They adapted it to suit themselves. They may not love it, but they persist just the same. Their heart needs to be in it.