Hey hey: what's up my friends, so in today's episode i want to share with you seven seven critical things to look for before you place a trade number one right. Are you trading based on emotions, because often right when the market is moving really quickly, especially when there's a breakout right just broke out of resistance? The candles are big. It's bullish. You can get carried away right because of the fear of missing out right.

You are letting your emotions right dictate. You know whether should you hit the buy button now or not right so be careful of this right be aware, right of trading based on emotions, because when you trade based on emotions, it's usually entering your trades at you know one of the worst one of the Worst possible times, because that's where the market is about to make a pullback a reversal, so be aware of this: don't trade on emotions? Don't have the fear of missing out right, you want to become. You want to be collected. Number two second thing to look for.

Is you want to ask yourself right? Are you trading into an obstacle? So, for example, let's say you you buy at a swing low right, you you go long and shortly after you know, the price hits higher. It comes into a key area of resistance. Then now you want to ask yourself this question: you know: is it worth buying at the swing low when you know shortly later right, a strong area of resistance right? It's going to be, you know in front of you kind of like an obstacle in your way right that will, you know, hold down the price right so because, if the obstacle is, you know too near your entry point entry point: what happens is that your risk To reward right isn't going to be very attractive because, let's say you're risking 100 pips stop loss, but maybe 20 people later right, you're coming into an obstacle. You can see that your risk to reward is pretty pretty skewed right.

So you want to ask yourself right: is there an obstacle right coming in my way? Number three: are you trading with the trend? This sounds like dude, rainer trading, the trend, but the reason why i share this is because you know sometimes when you are so focused in the moment, you actually lose sight of the big picture, especially you know, if you are looking to, you know, buy low, sell High, as the price you know, keeps breaking down, lower, breaking down, support, breaking down the swing low, you think it's cheap and you want to buy but unknowingly right. If you just take a step back yo, you will realize that the market is actually in a downtrend, and why do you want to be buying a downtrend? It makes much more sense to look for selling opportunities instead of buying opportunities in a downtrend. So number three is to really take a step back and ask yourself: are you aligned with the trend or against it number four: are you trading from an area of value? So what this means is that here's the thing just because the market is in an uptrend doesn't mean you would blindly hit the buy button because the uptrend could be overextended. It could be far away from an area of value.

So when i talk about area of value, this could be you know things like a respected moving average in an uptrend uh area of support, a swing low, et cetera. So are you trading from an area of value or far away from it? So as much as possible right whenever i trade pullbacks, whenever i trade uh, let's say you know one thing you buy low and sell high. I want to trade it from an area of value. Right number: five build up right.

Does it have a build up right? Prior to buying the breakout, so if i'm not trading an area of value, the next thing i'll do, or rather the next thing, that the next approach that i'll trade is, you know trading breakouts and it's usually breakouts with a build up so a build up. In essence, right is like a tight consolidation. It's kind of like you know the the range of candles, like maybe 10 range of candles. You know just very small, consolidating you know side by side, but like little kind of little ends squeeze together on your chest.

It's a tight consolidation. So that's what i like to see right! I build up right before i buy a breakup, because when there is a build up form right, there are two things working in my favor number one. I can set a pretty tight stop-loss because my stop-loss, so i can just go below the low of the build up - and it's usually you know pretty small. Pretty tight second thing is that the market is in a volatility contraction and what this means right.

As you know, right, the volatility of the market is never static. It's always moving from a period of high volatility to low volatility and back to high volatility, etc. So when there's a build up, form right and if i were to you know, buy the breakout, there's a chance right, there's a good chance right that that low volatility environment could expand in my favor and if that happens, right, it offer offers me an attractive risk To reward on the trade, so this is why you know i love to look for a build up right prior to trading breakouts number, six, all right, an important question: can you afford to take the loss on the trade because here's the thing right, it doesn't matter If all the stars are aligned, you know all the technicals, the fundamentals, the macro, the sentiments it's all aligned. But if you cannot afford to take the loss on the trade, then you have no business taking the trade, because when you can't afford to take a loss right, it makes you do weird stuff man, i'm telling you weird stuff stuff, like you know, uh refusing to Adhere to your stop-loss, because you know you can't swallow the loss, because the loss is too big for you to take you would, you know, tend to ignore your stop loss and you know, pray the market moves back in your favor or how about you know you Would consider you know, averaging into your losses, right, praying and the market could do a slight rebound and you can quickly, you know, recruit back your losses.

So when you start trading with money, you can't afford to lose. When you start trading right and taking trades, you can't afford to lose. It makes you do weird stuff man, so don't you know, don't do that and finally, finally right, the last thing that i want to share with you is this: is this according to your trading plan, and if you ask me like this, is actually the most important Question because you can do all the right things right, all the the stuff, all the analysis right, but if it's not according to your trading plan, you have no business trading, because, if you're, not trading according to your trading plan that you've laid out for yourself. What this tells you is that your actions are not going to be consistent, because if one day your price action trading, the next day's quantitative trading, the next day chart patterns, candlestick patterns, etc, then your actions will not be consistent and when your actions are not consistent, Then you can expect a consistent set of results, so this is why you must have a trading plan.

You must adhere your trades right according to your trading plans. Only then will you achieve consistent actions which result in consistent results right, which ends up with consistent results. Okay, so quick recap number one right, uh, the first critical critical thing to look out for is you know, are you trading based on emotions? Are you letting the fear of missing out? You know affect your trading number two. Is there any obstacle in your path? Is it you know very near your entry point number three: are you trading with the trend? Number four.

Are you trading from an area of value number five? Are you trading a uh built up right? Are you are you? Do you have a build up form right? Prior to trading the breakup number six: can you afford to take the loss and number seven? Are you following your trading plan right so with that's it i've come to the end of today's episode. I will talk to you soon. You.