Thread by @nebraskangooner

⚠️Important tips for traders(thread):

1. Don't enter a trade right when u open the chart. This is FOMO. Unlikely that u open the chart exactly at the top/bottom for perfect entry

2. Zoom out & map out key levels on higher time frame before entering trades on lower time frame

3. Plan out what time frame you want to trade on

4. Look at price action THEN use your indicators to help confirm your directional bias. Indicators are supporting criteria

5. Find counter arguments to your trade. Could you be wrong. Any signs opposing your directional bias?

6. Decide what would INVALIDATE your trade idea. This is where you would absolutely close your position or place your stop loss. We must cut our losers somewhere

7. Calculate how much you are willing to risk on this trade. Do NOT start by calculating how much profit you can make

8. If u do NOT feel comfortable with how much you are risking then reduce your position size. It's that simple

9. Now plan targets using risk:reward ratio

10. Revisit step 3. Do NOT hold your trade longer than the time frame you're trading. This will often get you stopped out

11. Map out your trade again. Am I shorting resistance? Am I longing support? If yes, proceed

12. Be patient & wait for your entry criteria to be met. Don't enter a trade early. This gives u a less favorable risk:reward ratio

13. Enter your trade according to predetermined plan

14. Set your stop loss just past invalidation. NO EXCEPTIONS

15. Don't panic if your trade goes against u a little. This is normal. Most trades to not go immediately in profit and stay in profit the whole time. If u are panicking then you're over exposed!

16. Set a take profit

17. Put the chart away

18. Set alerts so you know when key levels are met

19. Steps 17 & 18 keep you from over managing your trade

20. Keeping time frame in mind, it is okay to check your trade after some time has passed but not immediately after entering

21. Remember your counter arguments to your trade. What are the alternate scenarios that can happen to cause your trade to fail?

22. At this point u may manage your trade if u see something concerning. Whether u take partial profit/manage stop loss, etc. This is done on the fly

23. Review your trade. If u won, great, move on. It's over. Don't celebrate your winners too long. Don't enter another trade until you've come down from the high of a big winner. This is when u are susceptible to giving large profits back

24. If u lost. Review it. Learn from it

25. Don't revenge trade. You don't "have to make the profits all back next trade." You don't need to immediately enter another trade. If you're emotionally upset about the loss then u were over exposed. Do not revenge trade. Do not over expose yourself next trade.

Back to step 1

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