Impulsive trading, 3

...cont'd discussion about impulsive trading...

Here’s two ideas for avoiding impulsive trading.

During trading hours, avoid information about trading except for information in your own Trading Plan. Don’t watch TV financial news shows during trading hours. Don’t read any books or web articles about trading during trading hours. Don’t drop in on any trading chat rooms during trading hours. Just read your own Trading Plan if you want or need to take in any information about trading during trading hours.

During trading hours, avoid looking at your Profit-Loss Account Information. Both the sight of a profit and the sight of a loss might motivate you to take trades not mentioned in your Trading Plan. Profits might give you the idea that you can “afford” to take risks not planned for in your Trading Plan. Losses might give you the idea that you have to take unplanned risks to get a chance to make profits to cover the losses.

...cont'd tomorrow...

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