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Rules for Entering and Exiting a Trade for a Newbie
It is important for every beginning trader to understand what a trading strategy is. In the understanding of professional traders, a trading strategy is not an algorithm or a set of indicators that every trader can buy and blindly follow its settings to earn from day to day. A trading strategy is a set of rules of a trader and brings him the most positive result. Any deviation from the strategy leads to losses.
Trading strategy describes the conditions under which the trader can open and close positions.
Next I would like to break down the rules that I emphasize myself and maybe they will serve as inspiration for your strategy.
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ENTRY RULES
Entry rules are the conditions that tell the trader whether to enter a trade or not. But the thing is, these conditions can vary.
For example:
- price movements
- patterns, patterns on the chart
- fundamental analysis: reports (dynamics of indicators for a certain period);
- indicators are used less frequently
Trading signals are different in terms of response time. For example, in trading often use entry signals on the breakdown of the level. The trader, having analyzed this signal, does not enter the position immediately, but waits for some time until some contracts are executed.
Trading signals are different in terms of response time. For example, entry signals on level breakout are often used in trading. The trader, having analyzed this signal, does not enter the position immediately, but waits for some time until some contracts are executed.
Determine which market conditions gave you the greatest profit. Write them down in a separate notebook or on a sheet of paper and hang them in…
