Find the best next trading move

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Trade the best next trading move

By Tom


How to find the best next trading move


  1. Figure our the key elements of the position and define the plan
  2. Consider what the price can do
  3. Come up with candidate moves for your next trade
  4. Calculate your next trading move
  5. Execute the trade



1.    Figure out the key elements of the position and define the plan:

  • Is there a clear define trend direction?
  • What is the overall trend direction?
  • Where is near support and resistance?
  • Are the trend lines relevant?
  • What is the duration of current trend?
  • Where is the price, in a the direction of the trend or a retracement?
  • Where is the price relative to areas of importance?
  • What is my time interval/time frame for analysis and for entries?
  • Are there any high probability candlesticks combined with price patterns visible?
  • Is the distance between price and areas of importance sufficient?
  • Are there any major economic news expected, if any at what time?
  • Am I familiar with the price character of this instrument?   
  • Do I have a define plan and strategy?

Always have a trading plan and strategy

2.    Consider what the market can do:

  • Price can go up, 
  • Price can go down,
  • Price can move sideways,
  • Price can remain in a none-trending/choppy market.
  • Price can violate uptrend line,
  • Price can violate down trend line,
  • Price can respect important levels,
  • Price can form patterns,
  • Price can form story teller candlesticks,
  • Price can respect patterns,

The price will always move

3.    Come up with candidate moves for your next trade:

  • If in an uptrend, I will consider Buying near areas of support, confirmed by a combination of candlesticks and price patterns.
  • If in a downtrend, I will consider Selling near areas of resistance, confirmed by a combination of candlesticks and price patterns.
  • If in a sideways trend, I will consider buying near support and selling near resistance preferably in the direction of the prevailing trend, confirmed by candlestick and price patterns.
  • If a none-trending/choppy market, I’ll stay clear and take no action (check back later).

Look for moves with the highest probability FIRST

4.    Calculate your next trading move:

  • Which move is more likely to happen?
  • Are there any high probability trade setups?
  • Can I afford the trade (required margin)?
  • Will the reward outweigh the loss - RRR, (prefer 2,5/3:1)?
  • What will my Max Risk per trade be (prefer 2%)?
  • What value/volume will I stake per pip?
  • Where will I cut the losers?
  • When will I let the winners run?
  • Will I use direct or pending order execution?
  • With a direct execution will I set “Fill or Kill”, or “Immediate or Cancel”?
  • With a pending order will is set “Expiration”? 
  • Is the timing right?
  • Can I manage the position once opened?

I will never trade without a stop-loss

5.    Execute the trade

  • Set the order on the Trading Platform

I will trust my skill as a Profitable Trader

Happy trading.




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