Top 10 Tips To Give Yourself An Edge Trading:
A Thread 𧡠π
A Thread 𧡠π
Research historical chart patterns to understand what is possible in the market and how markets change from uptrends to downtrends, and from volatile to range bound. Use this insight to structure profitable trading systems using price action signals.
Backtest your trading signals to see if they had an edge in the past.
Avoid random trading, opinions, and predictions and only trade a quantified trading system that has an edge over other traders.
Keep your losses small by cutting your losses short with a stop loss set at a technical level where price should not go for your trade to stay valid.
Let your winning trades run to your profit target when there is no reason to exit to make your wins as big as possible.
Use a trailing stop to lock in profits while they are there in a winning trade to avoid giving back open profits.
Ensure that your risk to reward ratio is at least 1:2 on entry so you have the potential to make at least twice as much on a winning trade than you lose on a losing trade. With a 1/2 risk/reward ratio you can be profitable with a 50% win rate.
Go with the flow of least resistance. Follow the direction of momentum and the trend on the chart, donβt fight it.
Become an expert on your own trading strategy and watchlist.
Trade a position size that enables you to survive a losing streak and also avoid the risk of ruin.
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