Hello Friends ,
From the very first day in TJ and my trading Career i have immensely focussed on Entries only.After learning various methods and Hopping systems i have learnt a hard way that Trade management and Exits are more important then Entries.
As we know that the Outcome of a trade is decided on how we manage our trade after the entry,This thread is dedicated to discuss various Trade management strategies to get the optimum output from a Trade.
i m in process to devise my Trade management plan ,All fellow traders and seniors are requested to contribute for the same so that an objective Trade management plan is devised.
before you risk your money..it is wise to have worked out the following..
1. entry price - based on chart analysis
2. max stop price level - max loss amount based on your available trading capital and %risk amount per trade
3. min stop price level - initial loss per trade based on chart analysis and will always be less than no.2
4. exit price - profit target based on chart analysis
2 is never adjusted and is your worst case hard stop
3 and 4 can be adjusted based on what happens after you enter market
it is wise to lock in profits when they are there..as they can disappear very quickly and lead you to chase the market..which is a very bad habit to get into
when you exit with a profit..you can always re-enter the market if price moves in the same direction as your winning trade..or..you can now take the opposite position with the same rules
if you have no rules then you should not be trading
if you are trading by pure chance..meaning that you can not understand price movement on charts..then you should not be trading
if you use leverage and expose yourself to high risk..then you must have a very rigid set of rules to stop u losing all of your money very quickly..it is always better to trade with a cash account if you have enough money..never use leverage unless u are very experienced and have already made money trading
newbies are sucked into many markets by being offered high leverage..it is also known as "leading the lambs to the slaughter"
never be in a hurry to lose your money..do all of your hard work first..and when you know how to read charts..manage risk..take losers and winners without thinking about it..then you can enter the market with confidence and not be fooled into thinking that making money trading is easy..for it is the exact opposite..it is very hard..and even more hard if you lose most of your trading capital when you first give it a try
J_S