Make a Trading Plan Then Stick With It

0

In the OTC markets we know that news, stories and  rumors can ignite abrupt moves in the stock price of the companies being mentioned. Pro traders will not allow these outside factors to alter their plan, especially when it comes time to sell. The reason for a stocks decline should mean very little to the pro short term trader. Once a pro trader has a plan they stick with it. No news, rumor, or tip should change this. Newbie traders are always looking for reasons to hold on to a losing trade, “Why is ABCD falling apart?” ” Is there bad news” “No news, maybe I should hold on another few minutes, hours or days and see if it comes back”. The pro trader sticks with their plan at all costs. They have put in their stop loss orders or have a predetermined line in the sand and will exit the trade if it goes below that point. Pro traders act on their plan first and ask questions later and do not look for reasons to stay in the trade. Questions like that should be asked from the sideline, not while in a trade.

When trading you always need to stick with  your pretermined plan. Failing to do so will just cost you money.

Share.

About Author

Leave A Reply