These are the things I'll recite every morning before trading. Something that I've realized is that I need to get mentally prepared before starting my trading day.
I'm sure I'll continue to add to this list....
- Never Let a winning trade turn into a looser. To me a winning trade is 15 pips and greater.
- If you are trying to justify why you should stay in a trade you should have already closed your position.
- Never double up on a loosing trade.
- Do not get consumed with trying to hit a home run every time. Concentrate on consistent steady profits.
- Always measure risk and reward before entering a trade. The reward should always outweigh the risk.
- Have your exits planned before entering a trade. You should have your profit targets and stop losses figured before you enter a trade. If you don't how can you analyze #5?
- Don't think and try to guess what the market will do. Every chart tells a story. Just react to what it's telling you.
- Follow your rules for trading.
2 comments:
Hi there,
it's almost a curse to have a good day/week because the over confidence creeps in... Well done in pulling it back though.
Thanks for the comment as Monday was a winning day in the battle with my psychology after the near disaster last week.
Have you thought about time stops as it was actually 'time' that got me into the cable trade yesterday. Mark Fisher, Logical trader (ACD method) makes a lot of sense with it in his book and seminars. If interested follow the 'OKL's ACD' link and you'll find the seminar video link. From a psychological point of view it makes perfect sense plus gives me an 'out' when I'm feeling uncomfortable. It's worth a ponder as a lot of the 'big fish' have either trained in ACD or at least know about the method.
All the best
Tim
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