Short Medium and Long Term Trading Plan ~ forex market news rss
I have already mentioned earlier on this trend the the need to have short, medium and long term trainding plan in place for any trader to be successful. Let me briefly explain my long term trading methods plans here:
Long Term
For my long term trading I use the following combinations:
a) Daily candle in conjunction with RSI. I will monitor the RSI for a clear direction. Once the direction is established I follow the direction. I allow that trade to float around for either 500 pips TP or until the price start to craw around the red horizontal line I have on my RSI chart before closing the trade.
b) Weekly Candle only. For the weekly candle, I open a trade at every month based on the direction of the weekly candly. I will set TP at 250 pips, where the TP is not reach, I wait till Friday to close the trade.
c) Monthly Candle only. For the monthly candle, I will wait 3 three days into a new month and place a trade based on the direction of the candle. I will set the TP at 500 pips, where the TP is not reach, I wait a day before the last trading date of the month to close the trade manually.
For the long term trades, I place only 5 trades in a month in addition to any floationg trade from my daily RSI Chart signal. When I started this method, it was very difficult to avoid the temptation to close trades already in profits or allow losing trades to float for weeks before turning around to profit. I must confess at the initial stage, I close most of these trades whenever I see 100 pips gain/loss in my live account, but with time I develop the discipline to stick to my plans.
The long term trades are usually in addition to my short and medium term trades based on signals from H4 RSI signal, major support and resistance, trend lines and price channels I mentioned in my earlier posts. For the short and medium term trades, I ensure that they are closed a daily basis at most within two days. Depending on my daily targets some of them are even closed within hours or on good days within minutes. I attach a daily chart which shows the trading opportunities for long time between January 2009 - June 2010 and the respect for the RSI 50 line which usually serve as guide as to whether to exit a trade or allow it run.
I will provide the summary of my method in my next post, post some of my results and thereafter come to the present and share my daily, weekly and long term trading plans on this tread for exchange of ideas.
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