Sounds pretty good, Cap. However, there's quite a bit more to it than simply picking a trade and setting a tight stop loss.
1. Always trade in the direction of the trend. There are short, intermediate, and long term trends. If the intermediate term trend is up, but the short term trend is down, it's ok to place a short term trade going short...etc. etc.
2. ALWAYS go long at support, and short at resistance. NEVER EVER EVER EVER place a trade under any other circumstances. (There are viable counter trend approaches...but not for amateurs, IMO).
3. Only use a couple of indicators to confirm decisions that you've pretty well already made based on price action.
4. Have very specific rules for decisions on how to enter and exit trades. Know your plan for entry AND exit before ever executing the trade. Also use time targets.
5. Rather than trying to time exact tops and bottoms to the exact pip, wait for confirmation. (There are viable anticipatory strategies. However, a person should be prepared to set very very tight stops and also be prepared to be right only about 30% to 40% of the time).
I agree that it's much easier said than done. However, once someone has their system and rules in place, then it's up to the individual to exercise enough discipline consistently so the end result is consistent profitability.
