As we begin another session trading tomorrow- here’s some resolutions which if you can stick by- you will have a profitable time in 2012.
Resolution No 1 : Understand your time frame. If you are a blog hopper, or study views from different places- know what time frame is being talked about before you enter a trade on someone else’s direction.Some people play for 10 points, others 50 and some others over 200. All of them at any point of time can tell you that they made a right call.
Resolution No 2 : Understand Balance and Trend. Play the small points in a balance zone and the bigger ones in a trend. Never fade a trend and don’t bet too big in a balance zone.
Resolution No 3 : Recognise Break Out trades as also reversion to the mean trades.In every situation do not chase the market- let the market come to you.
Resolution No 4 : Understand trade location when you enter and exit. Observe factors like Value and previous market reference points.It’s easier to understand the role of buyers and sellers if you know the trade location.
Resolution No 5 : Understand Control by different time frames.It’s a bit difficult for newbies but with experience you will pick it well. Once you know control, you will automatically start to look for signs when the control is shifting.