Develop Your Trading Strategy Based on an Edge
A trading strategy is a set of rules that help a trader make decisions in the market. It takes away subjective judgement and guessing. A strategy is based on an edge and the rules identify when that edge in the market is present.
A trading strategy answers the following questions:
What are the best conditions in order to enter the market?
What are the best conditions in order to exit the market, i.e. where are your stop losses and profit targets?
The basis of a strategy therefore consists of the following elements: an entry, a profit target and a stop loss.
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