Plan The Trade, Trade The Plan.
There’s nothing more critical to your success than being able to execute the above sentence. Trading according to your gut, or your “feelings” won’t bring you consistent performance. You can trade this way if you want, and sometimes you’ll be right. But you won’t consistently earn money. That’s simply no way to run a business.
Plan your trade ahead of time, when you have no monetary or emotional investment in the outcome. That’s why planning at this stage is real easy. You don’t care about roving that you right. You’re just preparing the best plan you can, in an objective manner.
Then once you’re in the trade, trade the plan. Don’t come up with a million reasons why you need to change the plan. Just trade it. Later on when you’ve closed the trade, you can evaluate whether or not it was a good plan. If you try doing this in the middle of your trade, you’re going to get all emotional.
And I’ve never met, read, or heard of a great trader whose best skill is that they get real emotional when trading. If you know of anyone, let me know!
