A Disciplined And Organized Approach To Trading In The Stock MarketA Winning Approach to Trading in the Stock Market Others have the merit of educating themselves but fall victims of their emotions. They hold on to losing positions hoping they will turn into winners and sell winners by fear of losing a small gain. They overtrade to fulfill a need for action or by fear of missing out. The consistent winners follow a winning approach:
A strategy to enter and exit trades
For every action you take, the reason should be clearly described in your strategy. Money management rules to keep losses small
During your learning phase, your goal should be to survive, not to make money. Start with low limits and raise them as you become a consistent winner otherwise you will simply go broke faster. Good record keeping
You should also keep a journal of your observations. A trading plan to keep emotions out of your decisions For every action you take during trading hours, the reason should not be greed or fear. The reason should be because it is in the plan. With a good plan, your task becomes one of patience and discipline. You have to follow the plan without exception. Any valid reason for an exception - for example, correcting an oversight - should become part of the plan. Overtrading Sometimes the best thing to do is to do nothing. Not trading on those bad days is key to becoming a consistent winner – in some situations it is very tempting to overtrade:
You should not trade under the following conditions
A winning attitude If you believe in your edge, which is you believe that the odds in your favor for each trade you enter, then you should have no expectation other than something will happen. Your attitude will have a direct influence on your trading results:
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