As this week is about to kick off, I am going back to the basics. Reason being that I had a successful week last week until I took some cocky, ill prepared and WAY off my sytem, trades that took away most of my profit.
I will look at and take trades off of the following guidlines this week. I will be a machine and will not stray from this basic plan.
1. Look for important fundementals and money flows. Pick a side (long/short) and trade in that direction.
2. Identify the areas of Support and Resistance.
3. Look for Price Action at these levels and react to what Price is saying, not what I hope will happen.
4. Keep an eye on Consecutive highs/lows in order to realize a potential retracement and buy/sell at an advantage.
5. Plan my exit strategies with thought not emotions.
6. Finally, work to better understand the Correlation of other markets such as the S&P 500, Crude and Gold.
The most important for me is the patience to wait for these things to happen, not to beat a dead horse, but I am working on patience all the time.
Good luck and Happy Trading. See you around the block.