I know not everyone has the budget to invest in programs & courses.
So today I'll share with you a technique that will at least give you some results to start your transformation as a successful trader.
This exercise will help you put together a simple trading strategy within a good framework.
First, take a blank sheet of paper and write down all the tools & techniques you know about trading.
For instance: support & resistance areas, RSI, Bollinger Bands, Engulfing candles, Head & Shoulder, Double Tops, Fibonacci, etc.
It doesn't matter if you know how to use these techniques or not. You just want to write down things you are aware of.
Next, circle all the elements (in your previous list) that you know how to use (i.e. that you master).
At the same time, highlight the techniques you are interested in learning more about. These are the things that you might not know well, but that you are curious about.
The elements that are circled or highlighted are likely to be part of your trading strategy.
Now let me teach you a framework to organize this and turn it into a good trading strategy.
Market Phase ➡️ Zone ➡️ Price Action ➡️ Indicator
This is something you need to remember. It's how good strategies are built.
Any successful trader you ask will have these elements in his strategy.
Here's a short definition of each:
- Market Phase: has to do with identifying if the market is sideways or ranging. Decide if you trade trends or reversals.
- Zone: finding areas on the chart where you can enter trades (i.e. support & resistance, pivot points, Fib levels, etc.)
- Price Action: any price action patterns (candlesticks, chart patterns, etc.)
- Indicator: pretty simple, any indicator that can help you add confluence to the trade (i.e. RSI for reversals, EMA for trend, etc.)
The Indicator part is optional but recommended if you want more confluence.
We'll go back to the list of highlighted and circled items.
Take each one and re-write it under the right category.
All the tools you pick should be aligned with the type of trade you're looking for.
If you trade trends, don't use Engulfing candles for instance. Those by definition are for reversals. Look for other continuation patterns.
You want to aim to have 1 tool per category. You can always combine them, but it's better to start simple.
The cool thing about this exercise is that anyone can do it.
You'll soon find out if you need to learn more stuff or if you have enough in your arsenal.
In any case, you'll be able to create a new strategy pretty quickly.
Next step obviously is testing your idea and improving your results.
If you want to go in more depth on this and get my help, I have the Creating Your Own Profitable Strategy program for you.
Not only will I go through all the steps and guide you, I'll also be able to tell what you need to do to make your strategy work in the market.
This will take place LIVE online in a few days so you get my direct support.
