Discretionary rules before leverage in forex

Methodology comes before the market

The archive treats the traded market as secondary to having a methodology that can be applied across instruments. Forex is the setting in which that method is practiced, not a reason to replace it.

The trading psychology process here is a repeatable sequence that turns market state, session participation and a chosen setup into one entry, exit or abstention decision. Discretionary trading is defined as applying a small set of systematic setups to the current price environment rather than acting on gut feel.

Ask who is awake

Forex session overlap is framed as a participation check. The instruction is to ask who is awake before placing an order, because empty sessions lack meaningful participation.

A 24-hour session is described as useful for risk control because contingent orders can stay working and stop-losses are less exposed to the gaps of markets that close.

Risk control comes before buying power

Leverage is presented as the amplifier that makes unmanaged forex and futures accounts lose capital quickly. Risk and trade management come before the buying-power figures of about 100:1 or 200:1.

A stop-loss is a pre-placed exit that ends the trade when the original reason for being in it is no longer valid. The archive requires that stop to be placed in the market at entry. Mental stops and mental targets are treated as habits that only come after long practice.

One setup, then exits that must be obeyed

Trend state is read from a 34-period EMA trio on high, low and close, with a clock-face angle used to label uptrend versus downtrend conditions.

Profit giveback is mapped to a denial-anger-bargaining-depression-acceptance sequence. Both stop-losses and profit targets are treated as exits that must be obeyed the same way.

The most dangerous outcome described is a rule-breaking trade that still wins, because it teaches the trader that the plan can be ignored next time.

Homework that makes the plan automatic

Daily chart homework that includes recognizing support and resistance is presented as the habit that makes later plan-following feel automatic rather than forced. Support and resistance are repeated price levels used as homework so later entries and exits can be recognized rather than improvised.