Forex Trader's personality influences the interpretation of the Forex market, making it a key aspect of success or failure. This personality needs to be a refection of trader methodology; otherwise it is very common to fall into mental state in which it’s virtually impossible to follow the strategy plan. Vital element which formulates successful trading plan is to develop skills to quickly eliminate hazardous trades and look for best quality setups with the highest probability of winning. With enough practice it shouldn’t take you more than couple of minutes per trade.
If you followed Forex Price Volatility strategy, in order to determine the entry, you need to create a ZONE and mark trenches for position building all the way with increments in position size in contra-direction of the predefined move with reference to ZONE’s (scaling in).
Very good setup is when there are levels on the top of levels in close proximity. In such circumstances a multiply ZONES could be created with increment position sizes within ZONE’s levels.
It’s important to define as many evidence that is possible about best quality trade and combine all of confluence elements together. Next step is to define a risk out of the trade through the process I’ve described in Chapter 4 of my book.
Before putting on a trade, the risk and profit potential needs to be CLEARLY defined. Before making decision to get into a trade the first factor you should have in mind is your PROFIT potential and EXIT point. Most of the novices are planning the trade from the where to get in stand point. Don't do that same mistake. Plan your exit and profit targets before you make decision to enter.
Once you’ve entered a trade, manage it as planned! For more information about position building and management tactics please refer to chapter about scaling out on fractals in “Speaking Language of Forex Market”. Bear these rules in mind and don’t change your tactics in the middle of a trade if you don’t want to contribute to the market fresh capital supply. Read on Scribd...