Disciplined traders eliminate emotions from their trading in order to remain focused on their strategy. Explore tradeCYCLE, our six-step disciplined trading process that removes the emotion from trading and may lead to better results over time.
Step 1: Identify opportunities using E*TRADE research tools
TradeCYCLE begins with identifying potential opportunities and doing some initial research. No matter what your trading style is, whether it’s technical, fundamental, or swing-trading, E*TRADE has the robust research tools and features to help.
Some of the most popular research tools on the OptionsHouse platform include:
- Real-time market quotes and research
- Charts and other technical indicator tools
- Fundamental company information including analyst research reports
- LiveAction can help find potental opportunities based on market activity
Step 2: Build a trading strategy
After completing your research, you can visualize your trading strategy with tools on the OptionsHouse platform. With the integrated Snapshot Analysis tool, you can see the maximum potential risk or reward, break-even levels, probabilities, and upcoming events, all with one click.
Step 3: Test your strategy
Step 4: Execute your trade
Step 5: Create an exit plan
Successful traders have an exit strategy—this can help lock in gains and minimize losses. This is a key step in tradeCYCLE. You remove the emotions from your trading strategy by committing to a predetermined exit plan. When creating your exit plan:
- Set up concrete exit points for every trade with set profit targets and stop loss orders.
- Use E*TRADE tools, such as alerts, to keep you informed on price changes.