Find a way to follow the plan for success

Why Bother With A Trade Plan?

There are at least three really persuasive reasons as to why you should be doing this:

Less stress when dealing with the

market

A trade plan will make it much easier to define your level of risk for a

particular trade

You will always have a baseline to judge your trading performance and improve your

trading results

Something just hasn't "clicked"

What's the key to following your trade

plan?

It must be explicit covering vital details

Any trade plan needs to be thorough enough to ensure that you've at least covered the

basics

Risk per trade What you tradeWhat size you trade When you tradeWhen you don't trade What a setup is

If you know what you should be doing, it's

much easier to see the things that don't fall into this category

You must fully believe in it

There's this gaping chasm between

understanding concepts in principle and believing them to your very core

You need to build trust in it by evaluating it over a number of

trades

Only then will you have the trust in the

trade plan to stick to it

You must be fully focused

Make sure that you know exactly what you

are looking for

You can't place too much importance on single trades

There are many issues that can impact on your ability to follow

your trade plan

Too much importance on a single trade

Not wanting to take a loss

Cutting your winners short fear of missing out

Some trades will be winners and some will

be losers

All trading plans will have winning streaks, losing streaks and will

come in a random fashion

The best way is to theorize, observe, interact, review –

take a systematic approach

Call it the "scientific method" for trading