The starting point of my trading plan is my principal trading goal, which is to trade in the direction of the trend on pullbacks.
The formulation of this goal is important to me because it both determines what I do and also prevents me from doing something else. Going "off piste" and making trades that are inconsistent with my trading goals almost invariably led to losses. The aim of a trading plan is to take away the necessity of making complex decicions in the heat of battle.
The fewer decisions you have to make in trading, the more successful you will be. Let me say it again, the fewer decisions you have to make in trading, the more successful you will be. Keeping it both simple and focused is the answer to most trading issues.
Keep it simple stupid is what I learned and tell me myself every day.
ReplyDeleteHow do you keep ahead of or forecast trend changes?
Anon 91.47, As soon as I see myself going in that direction, I talk the market out aloud saying what I'm seeing. That's one of the reasons I teach and write this blog.
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