The second requirement for this simple trading plan is to only look at and trade the daily chart time frames, if you start looking at the 4 hour and 1 hour charts or below, you will have broken your discipline, and I can only vouch that this plan will work for you if you follow it to the T. You should have predetermined your 1R risk per trade (this is the dollar amount you risk per trade), then when you find a setup you want to trade you figure out the safest and most logical place to put the stop loss…then you adjust your position size so that you are only risking your predetermined dollar risk amount.