miketranz
961 posts
msg #64189
- Ignore miketranz
modified |
6/22/2008 9:05:36 PM
Great questions that need to be addressed:1)A well defined plan is your own method or parameters of action needed to be taken in written form,to profit in the markets.It should include the basics,trading style,entry,exit,stop placement,position size,profit expectation,risk calculation.2)You will know if you're not following your plan by a)your account is shrinking b)your losses are bigger than your profits.3)Discipline is the ability to scratch a trade if its not heading in the right direction.Its the ability to follow a plan regardless of what your emotions tell you.4)Taking profits is something you learn with years of experience.Its a matter of ones own discretion.5)Greed is wanting more than what the market will give.Not being satisfied with a decent profit.It will affect your bottom line if you let it.6)Always use hard stops right after you enter a position.Always know what your willing to risk in dollar amounts per trade.Use the directional method to cut losses.If a stock goes against you,thats a sign to get out fast.7)Set your stops where you know what your maximum dollar loss will be.If your entering a trade .10 above the previous days high,set your stop .10 below the previous days high and use position size to figure out what your max dollar amount risk is.If you follow the advice of risking 5-10% of your account on a trade,you won't be around long enough to worry about the rest of the rules.8)I use the broad market only as a basic feel for strength or weakness.Use smaller size or stay out in weakness.Use bigger size and aggression in strength.9)Use SF to find the right stocks to trade. The only "right stocks" are the ones that you know well enough to make money on.10)Bottom picking,read the RSI(2)posts for info.11)Perception drives the markets through emotion.Reality is where the price of a stock is in real time,which is the only thing that really matters12)Setting up entrys and exits depends on ones own system,stock selection,risk management.The bottom line is "do what works for you".You find that out by experience and paying the price to learn.If you don't prepare to win,be prepared to lose........
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