According to Jeff White, the founder of thestrockbandits.com, what matters most to a success trader is not winning big but winning and confidence. I can’t agree with him more. Once the confidence is lost, even with the best set up, traders will pass. And that is a waste because opportunity doesn’t come often. To build up confidence, traders need to have an action plan and a contingency plan.
Below is what I practice while trading. I always try to have a plan before I take a position, I try hard not to rush or chase the market. I know when traders chase or rush the market, frequently reversal happens, they panic because they had no plan so eventually trapped with loss. In order to not chasing the market and having a plan before each execution, you must either be quick in planning or be disciplined to let the chance pass! Opportunity can turn to risk when there isn’t an execution plan.