The 3 Phases of Trade Analysis

By | July 14, 2016 4:53 pm

Phases of Trade Analysis

The Expectation Phase:   A technical trader anticipates that a past price pattern will repeat again, so he identifies the pattern, locates a current one and determines a suitable match is present.  Technical analysis is nothing more than finding previous price patterns matched with current market conditions.  As the Old saying Goes “What goes around comes around” Traders anticipate such repetitive behavior based on human nature and seek to take advantage of it. Expectation Phase should not make a trader Bias, and words like “SHOULD”,”WOULD”, “WILL” can destroy traders account. You need to make a proper plan with very very strict risk management.

The ACTION phase involves executing the  trade based on the previous ANTICIPATION process.  Since no one can tell the future or what the right hand side of the chart will reveal, the ACTION is based on the confidence that the trader will do what is right once a trade is put on, which is to exit  at a pre-determined Stop loss line or exit  at a pre-determined profit target , fully accepting the outcome of the trade and not blaming other for losses.  During Action Phase you should not be scared of taking the trade.

The REINFORCEMENT phase occurs after the trade is closed.  Whether or not the trade is a win, lose, or draw, the self-talk immediately following trade closure is vitally important for the next trade, and even the next series of trades, as future trades can be negatively or positively affected by building pathways to future success. Not Analyzing your trades and not learning from your mistakes  can make or break a trading career.

3 thoughts on “The 3 Phases of Trade Analysis

  1. Gulshan Mehta

    Bramesh ji you are really great & countless thanks and unsaid blessings are with you for doing such a wonderful selfless service to the common mostly ignorant trader community.

  2. uttamp

    Bramesh Sir, You Are Great Motivator And All Articles Are Superb ,Knowledge Rich .Thanks A Lot For Kind Help !!!!


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