There’s MANY ways to trade and many more strategies to follow.
But I believe each strategy has 3 key points that are needed in order for it to be successful.
🔹 entry point
🔹 stop loss
🔹 exit point
Whatever strategy is used, if these three points are adhered to, then that strategy has a good chance at bringing returns.
Your stop loss…
You’ll enter a trade. Long or short. Are you right or wrong? 50% chance… yes?
So you have your stop loss…
Which cuts the trade with a small loss when you’re wrong.
You don’t have anything to stop you when you’re right so those trades can be small, medium or large wins.
Get ready to have MORE losing trades than winning ones.
But if you stick to the game plan…
Your winners will outweigh your losers.
Big wins. Small losses.
But you got to stick to the rules and have faith in the strategy…
Which, of course, you will have backtested to prove their worth and give you that faith.
Some strategies will give better returns than others.
Some strategies are better suited to certain markets.
Some strategies will give a clear and hard indication on when to enter and exit trades whereas some strategies are blurred… it’s up to you to see how clear you can be on the strategy signals.
Some strategies will enter and exit at a better price…
But NO strategy can guarantee you in at the bottom and out at the top…
NO strategy can guarantee you more wins than losses…
And NO strategy will ever work if you don’t stick to the three simple key points.
That’s why trading requires a strong will and mindset.