One trade per day per product strategy
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Here is a little strategy, or rather a trading method that I think makes sense: it is only trading once a day per product.
This trading method is suitable for traders who swing trade or day trade, not for traders who scalp.
Like every day, traders start by analysing all the products on which they are used to trading. Imagine for example 12 products.
After analysis, it appears that only 3 of the 12 products are inspiring.
On the first one, it is felt that if the support breaks, the bearish movement should continue well
On the second one, the price is in a range, prediction are that there might be a rally but there is not yet an indication of direction.
On the third, the tendency is bullish. As long as the price does not plunge under a certain level there are indications that the rising movement could easily be prolonged.
On these 3 products, traders know that they are only going to trade once today.
They therefore focus on these three products and wait for the right moment to enter into position. They don't even look at the other 9 products after analysis.
They know exactly which products, at which prices, in which directions they are going to trade these products today. There is no question of going against the direction afterwards, of cutting the position to reopen it a little later, or of looking at other products in case an opportunity arises elsewhere.
It is possible, that an opportune moment, on some of the selected products, doesn’t present itself. It doesn't matter.
The time to enter presents itself, the trader calculates the amount of his position based on his risk management (and therefore his stop loss). He will then choose whether to use a Take profit or move his Stop loss accordingly. Not to mention his trading strategy’s performance objectives.
One of the trades is finished:
- If there is added value: so much the better. The chart is closed.
- If there is capital loss: too bad... The chart is closed.
There were three trades to make today. 1, 2, or 3 were completed. On those which won, the trader took as much as he could take. On those where lost, his scenario did not come to fruition as hoped and he took his loss. And finally, on those that didn't come to fruition, he didn't win or lose, but didn't make any mistakes (very important).
This trading method makes it possible to avoid multiplication of trades and thus errors (always wanting to be in position on the market for example).
Having a number of products to process allows traders to stay better focused. They avoid having to have eyes everywhere for changing time units, charts, etc.
The direction of trade for each selected product is also defined in advance. This helps to avoid impulsive trades after rebounding on a support or other movements.
Finally, the fact that the price is known in advance helps to avoid entering into scenario that actually does not go in the direction hoped (even if the trader got the trade at a better price). Example: if a trader waits for the break of a support before going Short, it avoids entering short on a resistance.
Briefly: the trader expects certain things and focuses on them. Only one cartridge in the rifle per product to avoid nonsense and to try to get the most out of it.
He does not touch trades that did not inspire him today. But he might trade them tomorrow.
What do you think of this trading method? Do not hesitate to contribute to this discussion.
This trading method is suitable for traders who swing trade or day trade, not for traders who scalp.
The strategy applied on a trading day
Like every day, traders start by analysing all the products on which they are used to trading. Imagine for example 12 products.
After analysis, it appears that only 3 of the 12 products are inspiring.
On the first one, it is felt that if the support breaks, the bearish movement should continue well
On the second one, the price is in a range, prediction are that there might be a rally but there is not yet an indication of direction.
On the third, the tendency is bullish. As long as the price does not plunge under a certain level there are indications that the rising movement could easily be prolonged.
On these 3 products, traders know that they are only going to trade once today.
They therefore focus on these three products and wait for the right moment to enter into position. They don't even look at the other 9 products after analysis.
They know exactly which products, at which prices, in which directions they are going to trade these products today. There is no question of going against the direction afterwards, of cutting the position to reopen it a little later, or of looking at other products in case an opportunity arises elsewhere.
It is possible, that an opportune moment, on some of the selected products, doesn’t present itself. It doesn't matter.
The time to enter presents itself, the trader calculates the amount of his position based on his risk management (and therefore his stop loss). He will then choose whether to use a Take profit or move his Stop loss accordingly. Not to mention his trading strategy’s performance objectives.
One of the trades is finished:
- If there is added value: so much the better. The chart is closed.
- If there is capital loss: too bad... The chart is closed.
There were three trades to make today. 1, 2, or 3 were completed. On those which won, the trader took as much as he could take. On those where lost, his scenario did not come to fruition as hoped and he took his loss. And finally, on those that didn't come to fruition, he didn't win or lose, but didn't make any mistakes (very important).
What are the advantages of this trading strategy?
This trading method makes it possible to avoid multiplication of trades and thus errors (always wanting to be in position on the market for example).
Having a number of products to process allows traders to stay better focused. They avoid having to have eyes everywhere for changing time units, charts, etc.
The direction of trade for each selected product is also defined in advance. This helps to avoid impulsive trades after rebounding on a support or other movements.
Finally, the fact that the price is known in advance helps to avoid entering into scenario that actually does not go in the direction hoped (even if the trader got the trade at a better price). Example: if a trader waits for the break of a support before going Short, it avoids entering short on a resistance.
Briefly: the trader expects certain things and focuses on them. Only one cartridge in the rifle per product to avoid nonsense and to try to get the most out of it.
He does not touch trades that did not inspire him today. But he might trade them tomorrow.
What do you think of this trading method? Do not hesitate to contribute to this discussion.
