Often at times, I see traders who are clueless to what a trade plan is, talk more knowing what it means to properly Journal their trades
I was in this same position before.
Follow me on this thread as I decipher in my own Terms what a Trade Plan & Journaling means
A Thread🧵🪡
I was in this same position before.
Follow me on this thread as I decipher in my own Terms what a Trade Plan & Journaling means
A Thread🧵🪡
What is a trade plan firstly ?
A trade plan are sets of Criteria or plan a trader looks out to be fulfilled when he/she is executing a trade
It can consist of Criteria like
•The traders trade confluence
•The type of trade model the trader trades
•Amount he risks per trade
A trade plan are sets of Criteria or plan a trader looks out to be fulfilled when he/she is executing a trade
It can consist of Criteria like
•The traders trade confluence
•The type of trade model the trader trades
•Amount he risks per trade
•The minimum RR he's willing to take
•Personal rules
•Timeframes he sets his order or carries out his analysis from
And many many many more subtle things as it suits the trader in question.
I'd be using (he) to generalize "the trader". I'm aware that there are ladies too
•Personal rules
•Timeframes he sets his order or carries out his analysis from
And many many many more subtle things as it suits the trader in question.
I'd be using (he) to generalize "the trader". I'm aware that there are ladies too
So now that's out of the way, I'd be breaking this points down in order to guide you in building your ultimate trade plan
1) The traders confluence can consist of his tested ideology or logic he looks out for on his charts before he plans execution on any pair.
TA is subjective
1) The traders confluence can consist of his tested ideology or logic he looks out for on his charts before he plans execution on any pair.
TA is subjective
And everyone has their different modes of trading
Most traders trade only breakouts, while most trades Reversals too and others continuation
So it's very paramount that as an Analyst you have known the type if trades that give you the best outcome, and if "all" no P
Guru !!!!
Most traders trade only breakouts, while most trades Reversals too and others continuation
So it's very paramount that as an Analyst you have known the type if trades that give you the best outcome, and if "all" no P
Guru !!!!
2) Entry models are simple high probability patterns that has been backtested and have been proven to have an edge to play out 80% of a time
Most professional traders have types of entry models That works for them.
Entry Models would be a diff thread tho
But this is my model C
Most professional traders have types of entry models That works for them.
Entry Models would be a diff thread tho
But this is my model C
Amount to risk per trade is the amount a trader is willing to put on the line incase his trades go south.
Now note that this amount is one you must be comfortable to loosing over and over again, over a large number of trade outcomes before your capital becomes totally exhausted
Now note that this amount is one you must be comfortable to loosing over and over again, over a large number of trade outcomes before your capital becomes totally exhausted
This can be $10, $20, $30 any amount that suits you according to your strike rate over a large number of trades.
We'd be going kinda indepth on this on the RR & Risk management thread coming up next tomorrow
4) Risk Reward is simply an equation that gives a trader a determined
We'd be going kinda indepth on this on the RR & Risk management thread coming up next tomorrow
4) Risk Reward is simply an equation that gives a trader a determined
Expectancy for his or her trade.
Given an example
A trader trades only a 5RR setup. This means 1:5 ratio right ?
Now theoretically this means for every $1 the trader is willing to risk per trade, he is likely to make back 5x of it if the trade goes in his favour
Given an example
A trader trades only a 5RR setup. This means 1:5 ratio right ?
Now theoretically this means for every $1 the trader is willing to risk per trade, he is likely to make back 5x of it if the trade goes in his favour
Say to say a trade setup with 1:5RR and risk of $1
If he hits SL = $1
If he hits Tp = $5. You grab ?
Now what if the trader is willing to risk $10 it automatically means $50 reward
And what if $20 ??
Study the picture below properly
If he hits SL = $1
If he hits Tp = $5. You grab ?
Now what if the trader is willing to risk $10 it automatically means $50 reward
And what if $20 ??
Study the picture below properly
5) Personal Rules could be rules like
• I won't trade during news days
• I won't trade past a certain time
• I won't trade a particular session
• I won't violate my RR rules
And some other personal addendum he or she wishes to add to the list
6) Timeframes
• I won't trade during news days
• I won't trade past a certain time
• I won't trade a particular session
• I won't violate my RR rules
And some other personal addendum he or she wishes to add to the list
6) Timeframes
As discussed on one of my previous threads
Timeframes are very subjective to that type of trader. Now a scalper would necessarily not go above 30mins tf and so on and so forth
So building your plan around these criteria can help you generate a solid trade plan .
Timeframes are very subjective to that type of trader. Now a scalper would necessarily not go above 30mins tf and so on and so forth
So building your plan around these criteria can help you generate a solid trade plan .
But in as much enticing as this can be
90% of traders do not follow their trade plan even after taking time to draft them or even easily change them after experiencing one of two drawdowns in their portfolio
This requires top tier discipline & Consistency to follow and keep up
90% of traders do not follow their trade plan even after taking time to draft them or even easily change them after experiencing one of two drawdowns in their portfolio
This requires top tier discipline & Consistency to follow and keep up
Journaling in simple words is taking into record books all the details of your trade plan per trade.
Most professional traders use notion for this because it makes it easier for them to create and save a template for their plan
Here's an example below for my yesterday's GU trade
Most professional traders use notion for this because it makes it easier for them to create and save a template for their plan
Here's an example below for my yesterday's GU trade
I would have walked through the notion app for you
But I'm not even very much familiar with it yet
Maybe some other time I'd make a video
But here's a link to my template example
When you click it , tap duplicate & automatically if you have a notion app, it'll appear on it
But I'm not even very much familiar with it yet
Maybe some other time I'd make a video
But here's a link to my template example
When you click it , tap duplicate & automatically if you have a notion app, it'll appear on it
notion.so
That'd be a wrap for now
If you did learn a thing or two, I'd really appreciate a like & Retweet & your questions
It encourages me to do more 🙏❤️
Also follow me @Techriztm for more contents like this as I never fail to deliver the hottest😅💯🔥
That'd be a wrap for now
If you did learn a thing or two, I'd really appreciate a like & Retweet & your questions
It encourages me to do more 🙏❤️
Also follow me @Techriztm for more contents like this as I never fail to deliver the hottest😅💯🔥
Twitter is filled with alot of knowledgeable Idolo's
And you should connect with them inorder to be more !!
Here are a few of their handles
@Alh_Myke1 @Marresecira @ProsperoApril @neehyeehwah @Kelvintalent_ @Starr_gael @InvestorBateon @SDX_Trades @_InvestorBen @TraderHadesh
And you should connect with them inorder to be more !!
Here are a few of their handles
@Alh_Myke1 @Marresecira @ProsperoApril @neehyeehwah @Kelvintalent_ @Starr_gael @InvestorBateon @SDX_Trades @_InvestorBen @TraderHadesh
And an honorable mention to follow @dnatechbro
He helped walked me through on creating an illustrus template on Notion
Who knows ? Following him might get you one of his templates....
I'd be waiting for your comments & contributions below
Thank you
Pls like & Rt🔁 for others
He helped walked me through on creating an illustrus template on Notion
Who knows ? Following him might get you one of his templates....
I'd be waiting for your comments & contributions below
Thank you
Pls like & Rt🔁 for others
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