Category: Trading System

Trading System
April 23, 2020

Exiting a trade: The last but definitely not the least

Exiting a trade. This is in my opinion the most important part if we want to define what is a winner and what is a loser. But its a shame that most traders keep formulating entry plans, and trying to find the perfect entry signal, while paying very little or no attention to exit. New and novice traders mostly have a very well thought of […]

Trading System
April 23, 2020

Position Sizing. The quantity factor

Position Sizing, the question of how much, or what quantity? One of the most ignored aspects of trading by new traders. Generally with new traders, or traders with little experience I have seen a desire to use the entire capital for trading. And some of them who understand that they cannot risk all, try to minimise the risk by manipulating their stop loses. Now stop […]

Trading System
April 23, 2020

Risk Management, appetite for loss

Risk Management:- First we need to define what risk is before we can think of how to manage it. For a stock/commodity/futures trader, the risk is obvious, the money. Every trade has a potential to make money as well as lose money. If we believe market is random, every trade will have an equal potential to lose or to make money. Now we want to […]

Trading System
April 23, 2020

Enter a trade. Pull the trigger.

Enter a trade, this is when the action begins. Entering the trade is the actual physical task of filling in a form for the order on your computer. Or simply calling your broker to place an order. Before proceeding please make sure to have read about setups. This is also one of the areas that puts a distinction between a discretionary and a mechanical trader. […]

Trading System
April 23, 2020

Trading Setup – The first block of a trading system

What is a trading setup? A setup in a Trading system can be simply explained as laying the trap for a trade to fall in. Like a hunter lays traps for its prey, while trading we have setups. For people who beleive in astrology can consider is as an alignment of favourable stars. Setups are not an indication that something will happen. They are an […]