Monday, May 12, 2008

High Probability Trading: Trading against the plan

High Probability Trading: Trading against the plan

This post is awesome because it points out to me one thing I know that will kill me.

Losing it, losing my cool and just blowing it.

When does trading become gambling, an addiction and not something I am doing to try to earn a living?

The answer for this to me is when I lose my cool emotionally, dont have a plan, start trading by the seat of my pants.

I made all the mistakes this evening,

Things I did really wrong.

1) I really must admit, I DONT HAVE A Trading plan

I dont have some repeatable plan that once some indicator gets flipped I execute or close a trade

2) I added to a losing position
3) I didnt set a stop.
4) dont fully understand the software a I am using.

Ok, for the next two weeks I am going to trade demo and ... I am going to post my P/L every day with a post, this I atleast I was prepared for this , I knew this wasnt going to be easy. I think I was a little cocky but I am humbled now, for now.

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