Clarify Impulsive Trading

Cont'd discussion about website article entitled Replce Discipline

Another frequently occurring issue for traders is impulsive trading.

Who: You.

What: Avoid impulsive trading and enter only those trades that perfectly match your Trading Plan’s conditions for entry.

When: Every time you begin to make a decision about whether or not to enter a trade, you match the proposed trade to your Trading Plan’s criteria for entry.

Where: E.g. at your computer.

How: First, you look at your Trading Plan’s conditions for entry. Second, you look at the price chart or whatever data you rely upon in your Trading Plan as the conditions for entry. Third, if there is no match, stay out and get away from your computer so that you don’t talk yourself into a trade that does not match your Trading Plan’s entry criteria; but if there is a match, enter into the position immediately without talking yourself out of it.

Why: To avoid impulsive trades that wreak your account.


...cont'd tomorrow...

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