February 11, 2008
Important Questions to Ask Yourself
Leave a CommentIt is a wise thing to establish your trading plans before you start to trade live. For example, you should ask yourself these crucial questions:
- What entry and exit signals will I use?
- What are my rules for money management? (how much will I risk per trade)
- What time frames will I trade?
- What time of day will I trade?
- Will I trade at news times or not?
- How should I establish my record keeping system? (trading journal)
- What will I do when you win?
- What will I do when you lose?
- Whose advice will I take? You will learn quickly that there are many good opinions and a lot more not so good opinions that will end up costing you.
By planning you will be less emotional and make better decisions. You will profit more because you are acting rather than reacting. You should never change your plan during the middle of a trade unless you have a very good reason.
Topics: Disciplined Trader
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