Thursday, April 23, 2015

Learn how to execute a trade

You have already drawn a line next to the "pre trade entry" level.
Now, you will learn how to enter a trade.
1. Prepare 100 screen shots with specific and accurate entry points where
you think you should enter a trade.
According to the strategy I chose to analyze in this e-book (for
demonstration purposes only), I should look for a candlestick that closes
above last resistance or below last support level.
2. I open a chart and find 100 good potential entry points. In this stage, I
don’t care at all if the trade has been successful or if it failed. All I care
about is finding 100 examples to an accurate entry point on the chart. I
save a screen shot of every example I find

Here is how it looks like:
Example 1:
 Example 2:
I prepare a minimum of 100 screenshots, save them and analyze them a
few times in order to understand the best and accurate entry points.
After I analyzed them I can move to a demo account before I do it with
real money. I start looking for real entry points. When I find them, I can
enter a trade. I don't care about the trade’s closing points now and you
also should not be worried about it either.
First you should learn about the best trade setups. You need to identify
them so well that if I wake you in the middle of the night and ask you if
there is trade setup on this chart you'll be able to answer me "yes / no"
with only one eye open.
After you’ve learned to enter a trade, this is the time to learn how to
properly close a trade.

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