- Identify a strong trend in the NQ. This could be a trend up, down, or sideways.
- Wait for a pullback in the trend. This is a good opportunity to enter the trade.
- Set your stop loss at the point of the pullback. This is your maximum risk on the trade.
- Set your target profit at 2 times your risk. This means that if your stop loss is $100, your target profit would be $200.
- Monitor the trade and exit when your target profit is reached or your stop loss is hit.