NRG Trading Plan & Rules
by, 27th-September-2008 at 02:32 AM (2835 Views)
*Each trade is to have a plan in place before trade is placed - EG - Entry & Exit Strategy, Timeframe of trade, etc.
*Open trades to be reviewed daily and changes to stops etc made accordingly
*Stop to be moved to or close to break even after 1r profit is obtained.
*Trade plan to be followed through with - no chopping & changing to be made on the run(intraday). Let the market decide the trade - Don't over analyze the trade.
*All trades to be reveiwed after they are completed.
I will be using various set ups but have a list of basic requirements to be met before a trade is taken.
*Type of trade? (Reversal, swing, trend following etc)
*Determine the timeframe of the move I'm looking to trade - EG - Short, medium, long term.
*What is the major trend? What is the trend for the timeframe I wish to trade? Does this affect the trade?
*Entry, stop loss & target levels for the trade
*Risk to Reward
*Plan for trade
*Exit plan - Trailing stop or exit on price target being met.
Will use 3 main strategies depending on the type of trade etc but I may also use something different if the plan requires it.
1. A trailing stop
2. Exit at price target
3. Profit protecting stop - A trailing stop that runs close to the price action to protect open profits - Not based on T/A. For shorter term or swing type trades that are approaching support/resistance zones or are showing signs of weakness.
Of course these are subject to change as I progress, rough draft atm.
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