What's the clear cutting edge difference between a profitable trader and a losing trader?
TRADINGFEATURED
"Refine your trading edge by taking the trades and tracking the results in a trading journal"
I challenge you to follow this.
4 hours per day for 30 days. 90% of you will fail. The other 10% will likely go on to become profitable traders.
1 hour analyzing charts:
Pick 1–3 charts to focus on first and study how price behaves.
Mark the swing structure in the higher time frame to determine if the stock is in an impulsive or corrective phase.
Mark highs to build entry and exits.
Identify a break of structure.
1 hour back testing your strategy:
90% of traders skip this part because they want to get straight to making money part.
Take 1 hour to back-test your trading strategy using historical price data.
Try to identify patterns in your winning and losing trades.
1 hour evaluating your trades:
Refine your trading edge by taking the trades and tracking the results in a trading journal.
Entry log
Position size
Trade duration
Profit and loss
Screenshots of the trades (won/lost)
Emotions felt during the trade
Refine based on insights
1 hour systemizing your approach:
Answer these questions to get you started.
When will you sit down to trade?
What time frames will you use?
How much capital will you risk per trade?
What has to be done before you enter?
How many trades will you take in a day?
When can you re-enter after getting stopped?
What’s your maximum drawdown each day?
Is there a specific risk reward that you will follow?
What will you do if your setup is not there?
Credit: Quora