1. Every Sunday evening when setting up my weekly trading schedule, I make a point that I will only trade the London Session onwards... in my case I only have time between 8pm till 1am local time (or 8am till 1pm US Time = approx 5 hours daily). No matter what happen in between 8am till 8pm that day, I don't even look at the market. Ok ok I admit, I did peep sometimes during office hours...2. My current balance now is (for example) USD5000 and I plan to generate 5% from this equity level, that is USD250 in this case. Yes, 5% is actually nothing as I knew traders who even double their account on daily and weekly basis by scalping. But you must remember, there is no way you could make extraordinary gain without taking extraordinary risks. So, DON'T FORGET to think on the downside JUST in case if you got all your trades wrong for the day.
3. Though I'm not really a news trader, but economic news time (i.e from FXSTREET.COM) is surely the first thing that I would check before I start doing anything else. I would mark all these times on my tiny whiteboard as a reminder. Later I would read all the technical and fundamental analysis from Action Forex.com in order to have some ideas on what's going on in the market.
4. In order to get that USD250 as profit target, with Risk Reward ratio at 1:1, I would have to risk USD250 as well, which is 5% from the account level. My normal stop loss is 50 so dividing 250 with 50 would allow me to open a mini lot position of maximum size of 5k only, or USD5 per pip.
5. In order to further reduce my risk using the 1-2-4-8 attacking plan, I would start taking a position of 1 mini lot upward (1k), provided the setup is there.
6. Ok this is the hardest part, WAIT FOR THE SIGNAL. Plus watch your timing as well. Normally market move in one direction during the same hour. To be safe, you could use the 15M TimeFrame (TF) bar as well.
7. If you have a good system, in my case I am using both the KF and latest is BD system, you must trust the system and wait for proper entry signals before making any entry attempt. Remember, NO SYSTEM IS PERFECT, BUT...
8. Follow the system, no matter what. If you don't trust your own system, then there is no point of installing them in your MT4 in the first place. And if you don't have a system, you are no better than any other gambler out there...
9. Stay disciplined & trade as mechanical as possible without having any emotional factor. Reminder though - this is rather easy said than done.
10. Last but not least, be objective with your target and avoid overtrading. Once you reach your profit target or threshold limit for the day, get out and stay out.
There you go.
Indeed there are many other ways to trade the market as well, especially if you are a Swinger. But this is what I do for now as an active Intraday FX Trader... I have tried a few times to swing the market with little success, hence I prefer to stick with my scalping method at least for a while.
To me, there's no wrong or right here in my opinion, it's just a matter of choice. Bottom line, as long as you make money consistently, then you're good. No matter what other people say... right?
Cheer up Guys!
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