This strategy works on all time frames and all markets.
To become a target trader, you need to know exactly where your entry, stop loss, stop to entry and take profit levels are before entering a trade. By becoming a target trader you will be able to easily know all of this and more.
Markets trend, retrace or consolidate and then trend and by understanding that markets consolidate between 61.8 and 38.2 of the extension Fibonacci levels we are able to plot a kind of “road map” for the market. Just as in the image below.
This Consolidation Fib strategy is one out of five strategies using Fibonacci levels that we trade together over Zoom in our live trading room. All of these strategies have helped us and our community of traders to know where we are and where we are going in the market and thus we are able to reduce fear to a level that enables us to make clear, calculated decisions. Our goal is to train and mentor our community to become the best traders they can be. Once you start trading well the money will follow.
– Patrick Moore, Trader5 Ways to Improve Your Trading
- Keep It Simple
It’s very easy for a new or intermediate trader to drown under multiple trading strategies. The best thing for you to do is to keep it simple and trade one or two strategies, at least in the beginning stages of your trading journey.
2. Record Every Trade Taken
To ensure that your trading is profitable, you need to record your trades. This includes the stop loss levels, the target levels, whether it’s a profit or a loss and whether it is long or short. Capturing the data from your trades can outline possible mistakes you are making, and help you realise what has been working and what hasn’t.
3. Avoid Others’ Opinions on Trades
Everyone trades differently and you should trade what works best for you, so that’s why listening to the opinion of others can cause your trading to faulter. However, there is an exception for learning and improving your trading from an experienced trader.
4. Be Aware of Your Emotions
Trading can evoke a lot of emotions out of us, and its best to minimize your emotions when trading. Trading emotionally can cause you to take trades you aren’t supposed to, stop losses aren’t taken and profits can be taken too early.
5. Stick To Your Trading Strategy
Sometimes the best thing to do when trading is nothing, it can also be the most rewarding. If you deviate from your trading strategy you can end up taking hard losses that weren’t supposed to take. So sometimes if you don’t trade but stick to your strategy it can be more rewarding in the long run.