Week 3: Select One Simple Trading Idea
Start with a straightforward strategy that can be expressed using measurable conditions. Avoid multi-leg options adjustments at this stage — they add complications involving strike selection, expiry, liquidity, volatility and combined-order execution.
Beginner-friendly strategy types
- Moving-average crossover
- Price breakout above a recent high
- Opening-range breakout
- RSI with a trend filter
- Mean reversion toward a moving average
- Volume breakout with price confirmation
Example strategy idea
Enter long when the 20 EMA crosses above the 50 EMA and RSI is above 55.
This is still incomplete — you must also define the instrument, timeframe, entry price, stop-loss, exit conditions and trading hours. That is next week's job.
Practical exercise
Review at least 30 historical chart examples of your proposed setup. Record when it performed well and when it failed. Do not modify the strategy after every unsuccessful example — your objective this week is to understand its behaviour, not to perfect it.
Week 3 outcome
You should have one trading idea that is simple enough to explain in two or three sentences.
This lesson is for educational purposes only. It is not investment advice, a recommendation or an assurance of returns. Trading and derivatives involve substantial risk, and backtested or paper-trading results do not guarantee future performance.
