Chapter 29, Part IV. Daily Routine and Disaster Plan. Page 9

Apply all your strength to follow your trading plan

So, we’ve passed through the process of trading plan creation, amd I hope it will be useful to you. As a conclusion, just some things to remember:

- Since we create a trading plan – we have to follow it.

- A trading plan should be based on reality but not on hopes.

- A trading plan should your personalize trading plan. It has to be suitable personally for you, since it is based on your trading system, psyche, lifestyle, goals and risk tolerance.

- Once you have prepared your trading plan – follow it. The plan is not a short-term issue, it is created for a considerable period of time. Later it could become and probably will become subject to change, but only when you will see clearly what particularly there should be changed. It demands patience;

- To stick with your plan demands solid discipline. If you do not have it – you do not follow the plan. If you do not follow the plan – you will see it by the end of trading session, when you compare what you’ve written in plan and what you’ve done by fact. So your trading plan also shows you when you have no discipline;

- If you make occasional impulsive trades, trades by gut feeling that turns to gambling – struggle with it, estimation the reason of that is a first step to avoid it in future. Find the way how you can do this. One way is to place orders and close the computer, but this is not a rule of thumb. This issue is very common with lack of discipline.


P.S. This lesson was written by Sive Morten, who has been working for a large European Bank since April of 2000, and is currently a supervisor of the bank's risk assessment department. Sive's knowledge of forex market and banking industry is vast and quite complete. If you have any specific questions about forex, banking industry, or any other financial instruments, please post them on the next page and Sive should answer soon.




Note: FPA ranks are earned in the battles against scam, not in the classroom.