More Beliefs....

So, I've been doing reading for the last few days...some self improvement books and some trading systems books, and this book on psychology and peak performance.

Here are some beliefs that I will use to develop my trading system.

• I believe there is an opportunity everyday to pull money out of the market. I want to have at least one good trading idea per day.
  
• I believe trading with the fundamental trend gives you a higher probability of profit.
  
• I believe Fibonacci ratios work. They provide high probablity entry signals for trend trading, especially at the 61.8% Fib retracement level.
• I believe trade management is just as important, if not more important, than picking out the direction of the market. Know when to lock in gains and cut losses. Because of the nature of the Forex and how it reacts to news events, this becomes more important on as you go down in time frames.
  
• I believe risk management is key to success. Never risk more than 1% on average. I will try to risk around .5% on most of my trades and my max risk size will be 2%.
• I believe in scaling in and out of positions. This increases the breathing room I can give my trades, lock in profits, and reduce risk. Definitely makes trading less stressful.
  

Beliefs on "Support and Resistance"

• "00" levels are very strong areas of support and resistance. They have a high probability of stopping/slowing a move or even reversing it. I think this is the case because that's where big money puts orders in. Probably easier to calculate risk/reward using these levels.
  
• Pivot point levels work, but better so on days of light news reports.
  
• I strongly believe in Fibonacci ratios because I think everyone else and their mama is watching them.
  
• The most watched MA's (simple 50, 100, 200) can work as support/resistance levels.