Friday, October 23, 2015

Patience and discipline as keys to trading

The key to trading is not simply taking the right trades, but to also pass on any trades that don't seem right. After all, its easy to just take every trade and ignore the failures, but this only makes your broker rich.

When the price action is choppy or the signal is weak, wait for the market to move away and give a better setup. This is patience and the key to limiting your losses.

Once you are in the trade, follow your trading plan. Do not be shaken out of your position. Exit where you think is a reasonable and conservative exit. Do not be greedy or your winner may turn into a loser.