“If you fail to plan, you are planning to fail.” — Benjamin Franklin
What your trading plan should include:
The rules of your system
The times you plan to trade
Trade vs no-trade conditions
A playbook of entries
Journal of trades
Sticking to your trading plan is arguably the most important part of your trading experience. Your ability to stick by it, is the difference between a profitable trading career, and the unfortunate results of 80% of retail traders.
For many traders, failure does not stem from a lack of skill at reading charts. It’s the inability to withstand the psychological woes of losses. As we’ve explored earlier, losses can come in many forms — positions taken based on greed, revenge and even fear of missing out.
Not having a plan leads to you flipping between looking for buying and selling opportunities throughout the day — leading to destructive habits like *overtrading*. It’s extremely unhealthy to have two biases for the day.
Some days, you won’t catch anything sticking to one bias. Understand that this is FINE. Take it as a character building day to fortify your discipline. You should be proud of yourself for sticking to your trading plan.
Accept it. Fortify your discipline, realize rewards over the long term.
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Forex Trading: Understanding the Global Currency Market
“If you fail to plan, you are planning to fail.” — Benjamin Franklin
What your trading plan should include:
The rules of your system
The times you plan to trade
Trade vs no-trade conditions
A playbook of entries
Journal of trades
Sticking to your trading plan is arguably the most important part of your trading experience. Your ability to stick by it, is the difference between a profitable trading career, and the unfortunate results of 80% of retail traders.
For many traders, failure does not stem from a lack of skill at reading charts. It’s the inability to withstand the psychological woes of losses. As we’ve explored earlier, losses can come in many forms — positions taken based on greed, revenge and even fear of missing out.
Not having a plan leads to you flipping between looking for buying and selling opportunities throughout the day — leading to destructive habits like *overtrading*. It’s extremely unhealthy to have two biases for the day.
Some days, you won’t catch anything sticking to one bias. Understand that this is FINE. Take it as a character building day to fortify your discipline. You should be proud of yourself for sticking to your trading plan.
Accept it. Fortify your discipline, realize rewards over the long term.