The 3Ps of Trading
The 3Ps of Trading
To be successful in trading you must follow the 3Ps approach to trading. The 3Ps is a methodological approach which helps you think rationally and make profitable trading decisions. In a nutshell, 3Ps is a 3 Step approach for Low-Risk Trading.
What does 3P stand for?
3P stands for Procure, Plan & Play phases of a Trade. The term 3Ps was coined by Jea Yu while reviewing our TradeVisor™ product. We saw a lot of synergy in the term and the low-risk trading approach we had originally taken and so we have adopted the term to communicate as best practices for trading using our service. Let's explore each phase:
On any given day a trader could find thousands of trading opportunities. However, it is practically possible to only enter into few trades. In this phase, we narrow-down our trading options based on our trade preferences. These preferences could be the price range of the equity, the current volume of the equity, Q/Q gains etc. TradeVisor™ provides several filters which you can use to short-list your trades based on your preferences.
After you have short-listed your trading possibilities, you plan on which ones to trade on. The planning includes identifying opportunities with:
- Highest gain potential.
- Minimum trade risk.
- Creating a trading strategy.
- Identifying a stop-loss strategy..
- Estimating the exit price.
- Estimating the entry price.
- Analyzing when to exit a trade.
In this phase you are ready to make a trade, knowing very well about the risks, a stop-loss strategy and more importantly knowing when to exit a trade. All referred tools and strategies are built into the TradeVisor™ web application.
BPS Trading Strategy
The Buy, Profit, and Sell (BPS) is a trading strategy that provides a structured approach used by traders to enter, manage, and exit trades based on predefined price levels. This strategy involves three key zones: Buy zone, Profit zone, and Sell zone, each serving specific purposes in managing trades effectively.
priceSeries platform analyzes thousands of data points to identify these price zones and help traders make informed decisions accordingly. The strategy allows traders to maintain a structured approach, optimizing trade entries, managing profits, and mitigating potential losses effectively.