Why is it so important?
Even the best systems, methods, or courses are only as good as how we use
them. It’s basically like a diet. Even the best ones are only as good as our
discipline to stick to it. Well then, here’s the low-down on trading: The
best trading education in the world is only as good as your understanding of it
and your ability to apply it. The trading plan is the final and most
important tool to trading effectively.
No matter what type of trader you are, you and I know that we must trade with
discipline to win and to keep winning. And I’m going to tell you something now
about money and discipline: if you’re account size is small…your decision muscle
better be big. It’s a fact too many people want to hype around. To develop
discipline, we must understand how to follow a PLAN. That’s right! A plan. That
four-letter word. How you will trade is purely individual to you.
Nobody cares about your money as much as you do.
If YOU don’t have a plan, you are exposed to the overwhelming amount of news,
of opinions, and emotions that run like wildfire through the TV, the Internet,
and our own minds. Doing your homework before you put on a trade will help you
cope with second guessing a trade and keep you from buying or selling on
impulse.
You must be confident and flexible in your trading. Your confidence will come
from doing your homework thoroughly and consistently. (Personally, I do my
homework when the market is closed.)
