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Personal Investments • A best practice guide to executing a good trading strategy

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I have been a profitable day trader for many years and I would like to share my daily execution in the hope that it will help others:

Review your charts the night before and plan your trades for the next day

This will allow you to focus on the next day's execution and keep your emotions in check

2. During pre-market trading, make sure your settings from the night before are still intact

If not, make adjustments and consider canceling the trade. If yes, proceed as usual

3. Before entering a trade, review key support and resistance levels. Double check your risk to reward to make sure it is within an acceptable range for sustained profitability (I recommend a risk to reward ratio of 1:2)

4. once you start trading, place sell orders or alerts around stop-loss and take-profit areas

5. when finished, stop staring at the screen and let the trade run its course

An anxious pot never opens

6. Taking longer than expected? Check the charts regularly to make sure the trade is still intact

If the original reason you entered the market in the first place still exists, leave the trade alone. If the trade fails but your stop has not yet been hit, exit as soon as possible and the loss will be less than you originally planned

7. Once you exit a trade, review it after the market closes

Extract as much data from it as you can so you can repeat what went well and identify what went wrong so you can avoid it happening again in the future

Never stop refining

8. repeat

Statistics: Posted by Diana Moberg — Tue Jul 16, 2024 9:40 pm — Replies 5 — Views 334



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