METHODOLOGY
From observation to review
This framework organises my trading process into seven stages. It is not a universal setup and does not promise a particular outcome.
- 01ContextSession, range, timeframe and prior references before forming an opinion.
- 02HypothesisOne sentence describing the scenario without turning an observation into certainty.
- 03ConfirmationThe evidence I need before I consider taking a trade.
- 04InvalidationThe condition that would invalidate the idea.
- 05ExecutionEntry and trade management remain consistent with the context. If an essential condition is missing, I stand aside.
- 06RiskSize, stop and objective defined before the order is sent.
- 07ReviewI evaluate the process separately from the outcome and record it as part of the review.
The process requires me to define what I expect, what evidence I need and what would invalidate the idea. I do not judge a trade solely by whether it made money; I compare it with the conditions defined beforehand.