Position Planning

Careful planning must go into each and every position to effectively manage risk.

This includes coming up with a comfortable amount to risk, how much reward you are seeking for that risk, along with crucial levels and signals to watch for, such as support, resistance, or indicators.

Before entering a position performing technical analysis to map out any potential areas of support or resistance. 

Knowing just how much to risk to achieve a particular reward, and knowing at which price point to take profit at to achieve the desired results, is a risk management strategy in and of itself.

By having a plan in advance, there is less chance for emotions getting in the way.

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