We all want to make money in the market and if the answer is loud and clear to you than you can not afford to be a non disciplined trader in the market as it is a sure shot recipe to disaster.
We present below a few facts which will help you to use discipline to eliminate impulse trading.
Have a disciplined and detailed trading plan for each trade such as, entry, objective and exit with no changes unless the hard data changes and this is the reason we finish before 11 AM in intraday trading as key is to book profit and preserve the capital.
Have a disciplined and detailed trading plan for each trade such as, entry, objective and exit with no changes unless the hard data changes and this is the reason we finish before 11 AM in intraday trading as key is to book profit and preserve the capital.
- Disciplined money management indicates intelligent trading allocation and risk management.
- The overall objective is end-of-the-year bottom line, not each individual trade.
- When you have a successful trade, fight the natural tendency to give some of it back.
- Use a disciplined trade selection system: an organized, systematic process to eliminate impulse or emotional trading.
- You need to trade with a plan, not with hope, greed or fear.
- Plan where you will get in the market, how much you will risk on the trade and where you will take your profits.
- If prices are rising and the volume as well as open interest both are up, the market is decidedly strong. If the prices are rising and the volume as well as open interest both are down, the market is weakening.
- Now, if prices are declining and the volume as well as the open interest are up, the market is weak. However, when prices are declining and the volume as well as open interest are down, the market is gaining strength.
