- Respect first support / resistance areas. Set possible TP here.
- Remain faithful to your original order setup (SL and TP), especially if they have been well thought-out. Avoid impulse trading. Exception: release of big news
- Do not overtrade. Trade quality setups only.
- Entering at the end of a retracement presents the best opportunity to maximise R:R and probability.
- Do your own homework
Question EVERYTHING, even if it comes from Dr. Alexander Elder (i.e. the 2% rule)
- Use context-sensitive, self-adjusting rules rather than hard, arbitrary rules
- Equity curve growth rate is influenced by profit factor, equity risk % and frequency of trades.
Thursday, April 19, 2012
Lessons learned so far. As time goes by, I hope to expand this list.