Trading Principles

Principle # 1:

Buy Low and Sell High (sell high and buy low)

Principle # 2:

Confirm Price is Low

Confirm Price is High

Confirm Price is Low and Sell High (sell high and buy low)

Don’t chase the market, wait for price to reach qualified dynamic lows or highs. Once in a trade, wait for price to reach qualified take profit, adjust and tweak according to price but do not second guess the original plan. Manage stop loss accordingly, but not prematurely. Any adjustment of stop loss must be qualified.

If price does not move to a qualified dynamic low, no problem. Keep reading price action and wait for optimal trade entries. There are 28 forex pairs plus other instruments to trade. Be patient and scout good optimal trades. They are available, I just need to look and be patient.

Buy low and Sell high. First, identify high and low. Second, qualify high and low. Then place a trade for execution.

Demand and Supply (demand zone / supply zones)

When price is low, buyers will be attracted by the low price and begin to buy. As they buy more and more price will begin to move higher. Demand imbalance is when there are more buyers than sellers and price quickly moves up, buyers are considered to be in control of market price.

When price is high, sellers will be attracted to the higher price and begin to sell. As they sell more and more price will begin to move lower. Supply imbalance is when there are more sellers than buyers and price quickly moves down, sellers are considered to be in control of market price.

When buyers and sellers are in balance price is considered to be in balance. It may also be mean price is consolidating before a further move in its earlier direction.

Elements of a Trade

Signal.

Confirmation. Double confirmation.

Determine stop.

Determine take profit.

My Pyschology before during & after a trade

Be aware of my emotion and use it to guide me, not have it work against me.

Lot Sizing.

The right lot size will make trading less stressful and allow to hold for bigger rewards with smaller risk.

Trade with a plan.

Plan must have qualified reason for entry, profitable exit and stop loss area. Stop is an area not a level, if prices moves into stop area and remains there or through it, then take the loss. Keep losses small and capital available.

Don’t over trade.

Don’t chase the market, wait for high probability set ups. Keep my emotions disciplined mind under control.

News Release

Do not trade the news. It’s good to know when news is being released, but what the news is and its result should not matter. News is part of fundamental analysis and it can be manipulated.