05. Determine Trade Setups Archives

Allow Your Trading Plan To Succeed

 

This is a trader question from the Fibonacci Trading Forum.

Vernon says:
I have the most difficulty with over analysis and Support/Resistance Zones that challenges me when it’s time to pull the trigger.

Neal’s reply;

The real problem is that you can’t catch any fish if you don’t put your hook into the water. If too much analysis stops you from trading, you are guaranteed zero success.

Sometimes it helps to step back and simplify. See my reply about finding high probability trades. Then make the decision to take the trade.

Let your trading plan work for you. Take the trades that match your trading plan. If you don’t trust the plan, then focus instead on making a plan that you can trust.

-Neal Hughes “FibMaster”.

How To Create A Trading Plan

 

This is a trader question from the Fibonacci Trading Forum.

Kosta says:
What part of your trading do I need to improve?
Clearly defined rules of a strategy (not a mechanical though…)
proper mindset and flexibility in analysis.

Neal responds:

This is achievable, but requires a little discipline. You can either stop trading, document your strategy, then trade your plan, or you can document your plan according to your existing trades. Every time you make a trade, document the setup, the rules, the strategy. After the trade, make any edits to refine the strategy.

You’ll need to expand beyond your trade setups for a complete trading plan, but the strategy above will get you started.

It will take some time, then you will have clearly defined your strategy, Start today!

-Neal (FOREX Fibonacci Trading)

Pulling The Trigger Video Lesson

 

Today we had a 50 minute webinar for members of the Fibonacci Trading Forum, on the topic of “Pulling The Trigger”.

This webinar recording is packed with solutions to several other trading problems, as well as the “Pulling The Trigger” issue that many traders struggle with. The recording is available to members, for only $9.95 you can view it, and other recordings too.

Below is a free preview of the webinar, on YouTube;

FibMaster video Pulling The Trigger

Entering A Trade Too Early

 

This is a trader question from the Fibonacci Trading Forum.

Hussam says:
What is not working for me now?
- I have been trying to stick to higher time frames, but I find myself slipping into lower time frames. Maybe because I want to catch the move as early as possible, hence, trying to trigger on a lower time frame. All becomes messy and confusing.

Neal responds:
There are some occasions that warrant more aggressive entries, and they can be part of your trading plan. The mistake occurs when you defy your plan, taking the temptation to enter early.

Early entries can bring more profits when you are fortunate, but more often they will cause losses due to false triggers and failed breakouts.

Have a clearly defined entry trigger, wait for your system to give you permission to enter. Is sounds easy, but we have to work at it.

We’ll discuss this in a future Fibonacci Trading Forum webinar.

-Neal (FibMaster’s Fibonacci Trading Course)

Choosing The Right Chart To Trade

 

This is a trader question from the Fibonacci Trading Forum.

Hussam says:
What part of your trading do I need to improve?
- Choosing the right chart to trade, or when to leave a chart in peace.

Neal responds:
Part of your trading plan is to define your setups. You’ll have to monitor your charts until the setup develops and a trade triggers. If the setup evaporates, or the trade isn’t triggered, move on to another chart, or look for another setup.

If you can clarify your setup, it should be easier to decide which chart to trade, or whether to trade it.

We’ll discuss this in a future Fibonacci Trading Forum webinar.

-Neal (FibMaster’s Fibonacci Trading Course)

Managing Profit Exits and Stop-Losses

 

This is a trader question from the Fibonacci Trading Forum.

Kim says:
What causes me the most difficulty?
Where to take profits and managing the stop loss.

I have several specific strategies to help with this. Most traders focus first on entry technique, ignoring the problem of exits. It is a comment on your advancement that you are giving attention to the problem of exits. We can cover some of these strategies in our member webinars.

We’ll discuss this in a future Fibonacci Trading Forum webinar.

-Neal (FibMaster’s Fibonacci Trading Course)

Risk/Reward Ratios

 

This is a trader question from the Fibonacci Trading Forum.

Martin asks:
I always try for a 2-1 ratio but because i trade the daily and 4-hour, the risk is quite high.

Neal responds:
Aah, the risk/reward ratio, one of the most frequent causes of failure! Trying to force your trading to fit an arbitrary ratio can be very difficult and very detrimental to your capital.

The market doesn’t care what your favorite ratio is. Traders must be flexible, and adjust trading decisions to accommodate a variety of conditions.

We’ll discuss this in a future Fibonacci Trading Forum webinar.

-Neal (FibMaster’s Fibonacci Trading Course)