Successful traders don’t guess — they follow a plan. In this part, you’ll learn how to design a simple, effective trading strategy that fits your style and risk level. 🎯📊
💼 What is a Trading Strategy?
A trading strategy is a set of rules that tells you:
When to enter a trade
When to exit
How much to invest
What to do in different market conditions
🔧 Components of a Good Trading Strategy
1️⃣ Timeframe
Are you a day trader, swing trader, or long-term investor?
2️⃣ Indicators
Choose tools like:
RSI (for momentum)
Moving Averages (for trends)
Volume (for confirmation)
3️⃣ Entry Rules
Example: Buy when price crosses above 50-day MA & RSI is below 70
4️⃣ Exit Rules
Use take-profit and stop-loss targets
5️⃣ Risk Management
Stick to the 1–2% per trade rule
6️⃣ Backtesting
Try your strategy on past charts before using it live
🧠 Pro Tip:
Keep a trading journal to track your strategies, performance, and lessons learned.
🎯 Practice Task:
✅ Write down your first simple trading plan
✅ Use it on a testnet or low-risk spot trade
📚 Next Up: Part 7 — Emotional Discipline: How to Stay Calm While Trading 😌
