Technical analysis, level 4: setups, risk, journal and psychology
Turn chart reading into a process you can test and repeat: one written setup and an honest backtest, an entry, stop and target planned before the trade with risk:reward and position size, a journal you review, and the mistakes that cost the most. Worked examples on gold, EUR/USD and Saudi Aramco (2222), a practice task and a “mark this chart” exercise in every lesson.
⚠️ Risk warning: CFDs and leveraged forex are complex instruments with a high risk of losing money rapidly. Most retail accounts lose money. This content is education only, not investment advice or a recommendation.
0 of 4 lessons completed
- 1Build and backtest a setup
Turn a chart idea into written rules for the trend, the area, the trigger, the stop and the target, then test those rules on past data honestly: enough trades, no hindsight and no changing the rules halfway. Gold and EUR/USD examples.
4 min read - 2Entry, stop and target: R:R and position size
Place the stop where the idea is wrong, set the target at a level, work out risk:reward, and size the position so a loss costs a fixed share of the account. Worked numbers on gold and EUR/USD.
3 min read - 3Your trading journal and weekly review
Record every trade with the setup, the prices, the result in R and whether you followed the plan, then review the journal every week to find the mistakes that repeat. Saudi Aramco (2222) and gold examples.
3 min read - 4Mistakes and psychology
Recognise revenge trading, fear of missing out, moving stops and freezing after losses, and use simple rules (a daily loss limit, a pause after a loss, a fixed risk) to keep emotion from making decisions. Gold and EUR/USD examples.
3 min read