Think in Conditions: IF–ELSE Logic Applied to Trading

[Ocham]

Keeping trading simple is our main job. Making mistakes is not a problem—but whatever bias you have, you must trade according to that bias. Every setup has an invalidation. I also took a short at $94.5k and got stopped out at $95.7k. But I had other positions as well—POL, SOL, PLAY, DOLO—which have given me good profits over the last few days. So in the end, trading is all about your risk management and discipline. Learn conditions. With conditions, we can build logic, programming, and coding—so why not apply the same concept to trading? Master these five things: IF, BUT, AND, OR, ELSE—and trading will become much easier. What did I apply here? IF the STF support holds, we move toward the purple line. And we did. Then IF the purple becomes support AND VAH breaks, we will target 3.2T. If 3.2T breaks, we can expect to reach the channel top. OR ELSE, price will continue to move down, breaking levels and retesting them step by step.

[retaur]

I think a lot of people need to learn the 6th important operation: NOT (or DON'T)..

Sometimes there's no logic to trading a certain way and you need to leave it for a day or two and come back. Preplanning your trades and sticking to them is a great way to go though. It builds conviction and will let you better predict what's to come based on what you've already seen patterns wise and that's most of trading.

[Moreno233]

I have a little idea of computer programing and this makes a lot of sense in that it makes trading a process that is governed by rules. If a trader perfects this and following it in his trading, then he will be able to give convincing reason why he entered each and every trade and how he is able to manage the trades. Most people have the habit of entering trades they cannot ex[lain why they enter them and this is where the biggest losses comes from. Developing the IF statement you introduce here will make trading very smooth and sweet.

[JeffBrad12]

This IF-ELSE logic is actually how trading should work. The Take-Profit and Stop-Loss is the BREAK in the flow. The problem is trading is not as 2 dimensional as just IF and ELSE. Sometime you see some pattern and you want to minimize lose, then you gotta close the position before you lose even more money because you know your Stop-Loss being hit is imminent.
In general though, this is how it works for most of people who know how to trade and very disciplined. However, trading is much more complicated than that.