December 19, 2015

Streamlined F2G Trade Checklist

Disclaimer

F2G Trade Checklist (streamlined for maximum memory retention and maximum performance):

TL;DR: Focus on high probability entries at support or resistance, use "I dont care" position size, cut losses at the predetermined stop, take at least partial profits after quick moves or predetermined nearby prices. No excuses allowed, can always get back in if stopped out.

1. HTF & LTF technical analysis (see how below, also remember to continuously update)

2. High probability entry area and thesis (buy at support, sell at resistance)

3. Stop location that proves thesis wrong, respect it or the market will force you to take an even bigger loss

4. High probability price target for at least half of position, bat for singles to take advantage of compounding, take what the market gives you  (use LTF sup/res for these targets). Listen to what Einstein said about compounding: "Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn't, pays it.”

5. Set position size/dollar risk (emotion and risk management)

Technical analysis steps:

1. Draw support and resistance price levels
2. Draw trendlines and trend channel-lines
3. That's it, rinse and repeat

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