Discretionary trading is simple.
1) Trade only those setups that offer 1:4 or 1:5 risk reward.
2) Risk no more than 2% of your capital in any trade.
3) Plan a trade thoroughly - where you enter, exit, take profit, keep SL, etc.
4) Stick to the plan, don't meddle.
1) Trade only those setups that offer 1:4 or 1:5 risk reward.
2) Risk no more than 2% of your capital in any trade.
3) Plan a trade thoroughly - where you enter, exit, take profit, keep SL, etc.
4) Stick to the plan, don't meddle.
Successful discretionary traders are all systematic traders in disguise.
They stick to certain patterns and have a systematic way to identify them.
They have rigid money management rules that they don't violate.
They have rules to pick what they trade any day.
They stick to certain patterns and have a systematic way to identify them.
They have rigid money management rules that they don't violate.
They have rules to pick what they trade any day.
There maybe 10-20% discretion involved - maybe in picking the right stocks to trade, or the stocks to avoid for the day, or even the strike prices to trade - in terms of options.
But, almost all successful discretionary traders are systematic.
But, almost all successful discretionary traders are systematic.
Trading only those setups that offer an RR of 1:4 or more makes sure that you can be wrong even 50-60% and still make good money.
Not all discretionary traders may do that. But most of the successful ones inherently pick such setups.
Not all discretionary traders may do that. But most of the successful ones inherently pick such setups.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
