Recipes For Success
Take an index card similar to a recipe card and label the strategy name. An example would be trading long call options or short call options.
Any worthwhile trading plan has four components:
1. Identification of quality candidates
2. Excellent technical entry
3. Trade management
4. Preplanned exits, whether a target or a stop.
Continually looking for an easy, meaningful way to write your trading strategy plan? Try using a recipe card to record your strategy system.
1. Quality Candidates.
What are the criteria you have for what you consider a quality candidate? What other criteria do you want to use to filter out high quality candidates? WealthBuildersHQ has several subscriptions with high quality candidates which reduces your research time.
2. Excellent Technical Entry
Rob Roy uses Fibonacci support and resistance to time entries and exits. Warning: Do Not Get Overwhelmed by using too many technical indicators!
3. Trade Management
Rob Roy uses a 4-3-2-1 System to exit his trade at various profitable points in the trade. Moving your stop (and you should ALWAYS trade with a stop) as your trade moves in your intended direction is part of trade management.
4. Preplanned Exits
You should have your brokerage trade desk number in your phone as a back-up plan. If you know where the next hesitation point is, you can capture more profits and reduce the amount of risk you have in the trade. Nurture a wealth mindset with a well planned trade recipe.
WealthBuildersHQ is an excellent educational company for learning how to trade stocks, options and futures with many recipes for success.
What is your recipe for success?
Rob Roy uses a 4-3-2-1 System to exit his trade at various profitable points in the trade. When you scale out of a trade, you reduce your risk in the trade by taking profits off of the table. Psychologically, this allows you to stay in the trade longer with the last portion of your trade and the opportunity for a profit runner is more likely. Moving your stop (and you should ALWAYS trade with a stop) as your trade moves in your intended direction is part of trade management.
Nurture a wealth mindset with a well planned trade recipe.