- Try to avoid revenge trading. If you really following the Elliott wave, then prioritize your trades in following order to gain the highest return in every trade, Impluse cycle (highest priority) > Triangles > Diagonal Triangles > ABC Zigazg correction > ABC Flat correction > WXY > WXYXZ (lowest priority).
- Trade selection should be always followed by some system with known criteria to get profitable in each condition.
- Did you see the pattern you recognize, if not, then don’t trade it.
- Time is not money until you don’t know what to trade (which asset class) & when to trade (at the right moment).
- Trading is not only about making money in each trade, but it’s also about preserving your capital by understanding the risk by keeping your emotions aside, So you should know when to be aggressive (impulse patterns) and when to be defensive in trading (corrective patterns).
- Always read instructions carefully (typed on the chart or below the specific chart channel), because losing trade is better than losing money.
- Whenever you take an entry in trade : – you should Commitment the entry, exit, stop loss, and quantity based on the risk-reward ratio. – Once you pull the trigger, you should not change stop loss in case of negative trade. – Never averaging out the position when it is in the loss. (it works only in the corrective market, in the trending market it’s turning into a huge loss).
- The question on entry/exit rules is looks very easy, but the answer is very complex. 1. Entry/exit rules depends up on the method you follow for analysis, Ideal entry should be having good risk reward ratio with high probability count, If any one is not up to the mark, then you should go with low quantity trade, Any trade set up needs some confirmation and relative level to mark the stop loss, Without knowing the stop loss one should avoid even if the trade has high probability count. 2. Make sure you draw all possible counts on the chart to confirm different scenario (both bullish and bearish) before taking a trade, so that if main counts failed to unfold, you can even go for next possible count to make some money out of work you did.
- You need to confirm the count in at least two different time frames like 1 hr and 15 min if you trade intraday set ups, for example if you expect a 5th in one hour time frame, then you should either wait for 1st subwave in 15 min time frame and enter in trade when 2nd wave is in progress or when it is about to end with stop loss below the starting point of subwave 1 4. You can use fib levels to enter the set up, when you failed to identify the exact pattern within correction, OR you can take partial entry at different levels within 2nd subwave. The most important thing in entry is to relative performance of that particular ticker vs the others (in case of crypto, you can compare with BTC, in case of BTC you can compare it with total and total2), so if it is under-performing the others than you should wait for entry in case of you are thinking of buying (if you want to short sell then wait for under-performance relative to others). 5. If you trading stocks, when market is in 3rd wave in larger degree, then you should be aggressive in trading, but if you trading stocks when market is in 5th wave or even correction, then you should be defensive in trading and wait for more confirmation of outperformance ( in case of buying) with reference of some indicators.
