Discipline is Key

  • Preparation
    • Mental – Think through risks, know in advance how to get out of the trade and at what point. Alcohol takes up to 24 hours to leave the blood system, so don’t consume alcohol from Sunday through Thursday.
    • Technical – Scan charts daily for opportunities.
    • Physical – Do exercise to release tension in a positive way
  • Execution
    • Control risks – cut losers
    • Follow the trading plan
    • Hold winners
      • Ask yourself the following questions:
      • Has the market changed since I placed the trade?
      • Is the original pattern still valid?
      • Has anything occurred that causes the original position to be suspect?
      • Has the initial price objective been reached?
      • Can I afford to take the risk on this trade?
      • If yes, stay in the trade.