Step 1: Find your trading advantage

Trading advantage depends on the method you use. Like me, using price action to trade, the most necessary condition to open orders is that the market must have a trend, with strong momentum and support or resistance, and trade setup appears at support. resist.

Each method has its own conditions to participate in trading and you must be the one who understands those conditions. You only enter orders when the market meets all these conditions, otherwise, you should definitely stay out of the market as a mandatory rule that you must follow so that you can participate in battles. best comb, best quality.

Step 2: Determine the risks you accept

After you find a trading advantage, you need to determine how much risk you take for this opportunity. And this level of risk should be based on the frequency of trading in a certain period such as 1 day, week, month, ... to determine.

Given the level of risk that you accept to lose for a trade, determine the volume of your trade.

Step 3: Set up the rules for entry and exit points

Based on the advantage of your trading and the signals you enter, it is now possible to set up rules for entry and exit. The entry and exit points of each trading order can be different, but the principles are the same. At least the core principles you must follow to ensure proper entry and exit points.

The exit point here is both the stop loss and take profit.

Step 4: Place trading orders

Step 5: Watch the market until the stop loss or take profit

For many traders who do not know how to flexibly exit or move the stop loss to follow the trend. Then we should use a fixed stop loss and take profit. That would be better for us. Other techniques you can slowly learn and practice with. If you do not know, do not apply indiscriminately.

Step 6: Repeat this process with the next command

This is a very important connection factor. This repeating process will help you repeat that process again, help you understand the trading process, understand the method, establish compliance with the principles, and gradually develop persistence. Especially when you get results from these actions.

You should have a methodical and repetitive trading process over a long period of time. One more important note is to always keep risks in control. One is to make a profit in the long run and get a lot of other benefits or you will be ruined by the market in the long run by whether you do these well or not.