Stay On Track With A Trading Plan
(Note: This is the second segment of a two-part article)
The trading lifestyle creates a strong attraction. It fans desires of working for yourself; having an “inside track” with the boss (yourself); and taking breaks anytime during the day while wearing pajamas and enjoying tropical drinks.
Until the market shifts and your latest “sure thing” trade goes sideways fast.
Now you have to put on the “boss” hat and start troubleshooting. Any wrong decision falls onto one single employee in your newfound world of freedom — you.
Ever think about family-run businesses and how there’s always that one relative they can’t fire?
When the market goes against you and your trading account is a bust, you can’t fire yourself — and you can’t quit. This is your business.
You must turn to your trading plan to get things on track.
A trading plan is the key to managing yourself when you start to act up and, if you’re like most traders, you’re going to act up. You’re going to get overly excited when things are going your way or you will get overly frustrated when they don’t.
In any case, your trading plan is a map showing the discipline and structure needed to hold yourself accountable for trading the way you intended.
There are those who believe a plan may not be absolutely necessary for everyone.
But our team of traders — with a combined 100+ years of trading experience — know that a defined plan is a working tool that serves a great purpose.
It is a whole lot easier to have a trading plan and not need it rather than face the markets without an intentional pathway to profitability.