Welcome to Trading Made Simple Exactly What to Do to Be a Full-Time Professional Trader Blueprint
Explore Self-Paced and step-by-step tutorials to help you build your Full-Time Professional Trader Knowledge and make your goal of becoming a Professional Trader Made Simple.
Your Lesson 04
Task: Read Three critical concepts about how to build a Trading strategy that you can depend on and reflect on to check how it differs from your existing trading strategy if you have any.
Goal: To know what you need to become a professional trader.
How to Build a Trading Strategy that you can depend on
Having a clear easy to follow a rule-based trading strategy You must have clear rule-based trading strategies that are objective. This means there must be zero doubt about when to buy or sell a stock, future, or option whatever you trade. The rule must be written in a step-by-step trading plan that you will use to enter and exit the trade. It is like having a checklist in your hand when making a critical decision.
Having a diversified trading strategy to handle drawdown better. Drawdowns in any trading strategy are very common and unavoidable. From time to time, a trading strategy becomes out of synch with the market condition and produces negative results. Almost every time, after a brief period (we call the drawdown phase), they recover automatically and start making gains again. That recover the previous losses and your overall profit reach a new high. One of the ways to stay calm during this drawdown phase and not panic is to diversify your Trading with at least three different trading strategies that cover three different styles and their different instrument. It helps you to keep the overall profit for the day more consistent because when one strategy operates under a drawdown phase, others take care of the profit and make good the losses incurred by one strategy.
Having a few trading strategies that generate trade at a predefined time. Most technical indicators or trading strategy traders access available stock market courses, or the internet generates a trading signal as and when basis. When they tell you to buy or sell are entirely random. It means you have to sit in front of the screen and continuously track the indicators or trading strategies to act on the trade signal they generate. It is extremely stressful to be glued to the screen when nothing is happening with the hope that anytime a trade signal may generate. Your life will be easy if you trade with a trading strategy that generates a trade signal at a predefined time. It sounds hard to believe if there is such a strategy or not. At Trading Made Simple University, with a decade of practice and perfection, we developed a proven trading strategy that generates trade signals at a predefined time. It is like you know when to check the market, check the trade opportunity at a scheduled time, and enter the trade.