Protocols
PROTOCOLS
I have created some rules that i should follow and would like to share it with you guys (and gals too).. I make sure to read it every morning before analyzing the markets or before trading.. There might be some adds in the future maybe but for now these general sets of protocols help me..
Always have a trading plan.
Never let your emotions (greed or fear) influence your decision.
Follow your trading plan and not your mind or heart.
Always have a plan to include when not to enter the markets. When not
to go long and when not to go short.
You need to always have a trading plan that includes rules for Entry,
Exit, SL when entered, Trailing SL, Profit Booking, Pyramiding and Money
Management.
Do not go looking for trades. Trade when the trade is jumping out from
the charts.
Always look at the long time frame to confirm the trend (The factor of 5
can be used).
Do not go against the trend; although, some options can be traded to
cover the profits. (Rare Exceptions)
Never aim to catch the top and bottom of the trends.
Always give the benefit of doubt to trading ranges and not trends.
Never buy or sell short at prices way higher or lower than the value
zone (Moving Averages).
Standing aside is not bad and you should stand aside when not sure.
Its not compulsory to trade every day.
You need to know in advance what you are going to do during the
trading session, before the session begins.
Always keep SLs.
Always try to get the SL to breakeven levels.
Do not add to loosing trades.
Stop Loss should always go ahead with the trade.
Add only when the added trades SL is lesser than the profit of the
original entered trade.
Trade in profits should never turn into loss.
Book profits in highly volatile markets (loud) and enter when the markets
are less volatile (quiet).
Profits and losses should always include the slippages, commissions and
taxes.
A profit booking trade is better than an SL hitting trade (even in
profits).
Never predict or forecast but work accordingly with the market.
Theres a time to go short; theres a time to long and theres a time to
go FISHING.
It's better to miss a train than to try to get on a runaway train.
(Replace train with 'TREND').
It's better to miss a turn than to enter the wrong way.
Hope this helps some people
Cheers