Please follow following steps to consider whether it is right time to trade or not in the stock market:
1.Does 6%(monthly loss limit) rule allow me to trade.If yes then go to second step.
2.Is weekly chart giving signal? If yes,go to third step.
3.Is daily chart giving signal in same direction? If No, skip and if yes then proceed to next step.
4.Where will I put my profit target and stop and is the risk reward ratio is in my favour.
5.If it is yes then proceed to final step.
6.What size does 2% rule allow me to trade and how much will I trade.
Above rules are tested rules framed by the famous Dr Alexander Elder who is a renowned writer and writes good quality technical analysis books.
1.Does 6%(monthly loss limit) rule allow me to trade.If yes then go to second step.
2.Is weekly chart giving signal? If yes,go to third step.
3.Is daily chart giving signal in same direction? If No, skip and if yes then proceed to next step.
4.Where will I put my profit target and stop and is the risk reward ratio is in my favour.
5.If it is yes then proceed to final step.
6.What size does 2% rule allow me to trade and how much will I trade.
Above rules are tested rules framed by the famous Dr Alexander Elder who is a renowned writer and writes good quality technical analysis books.
