Trading Plan

"Plan the trade and trade the Plan" is perhaps the most common advise given to traders. Planning the trade is very easy. But most of the time we fail to trade the plan. In the heat of battle we become nervous, tensed and fail to execute as per the plan.Still it is better to have some plan and  teach ourselves to stick to it.

We are trading a discretionary method. Everything cannot be defined in such a method. It is impossible to set rules for everything.Discretionary trading totally depends on our judgement. We need to take decisions as per our judgement. So the end result will vary from trader to trader even though we are trading the same method.

I have prepared a brief plan to guide us in trading the method. I think I have covered the most essentials in this check list..I wish you to remind that the method cannot be traded mechanically. It all depends on your ability to Read and feel the Market

TRADING RULES

Entries

• Trade only at Decision Points
• Hide Initial Stop behind a DP
• Entry preferably on break of a potential Flip Zone(To ensure two layers of defense)
• Counter Bias Trades preferably on BOF (Ensure orders from trapped traders)
• BPB entries preferably only on the first BPB of the move( To avoid over extended moves)
• Ensure Space for the trade to move

Trade Management

• Scratch if price crack flip and settle (Think Pressure Plays then)
• Trail using flips and pivots
• Exit at the next DP
• Exit on reasonable profit
• Always consider strength of the move before the exit

Market  Bias

Initial

• Price Inside or Outside of Previous Day Range?.
• Daily chart in Rally or Decline?
• Price at Upper or lower side of Previous day range?
• Price above or below PDC?
• Price above or below Day Open
• Price Gaped on open? Trend gap or CT gap ?
• Initial price move. Bullish or Bearish.

Ongoing

• Current range above or below the previous range?
• Last DP crack. Upside or Downside?

 Other Helpful Concepts

• Master Candles at DP
• Initial Range
• Channel after a spike
• Barbed Wires
• Layer over Layer
• Brackets and envelops
• Cigarettes
• Pressure plays and Traps
• Fluid
• Critical Mass

Finally the most important thing. Always think order flow. Learn to identify locations where other traders are likely to keep their orders. Try to position yourself to take advantage of this accumulated orders

Your suggestions are welcome for improving the template