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Trading Independence - Part 2

Trading Independence

July 09, 2024•4 min read

How Can I Trade Without Letting My Emotions Get The Better Of Me?

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It's no secret that people can get super emotional and even foolish when it comes to dealing with money.

Trading exaggerates that emotion Significantly!

Maybe it’s because your quite literally trading money that it totally sets of emotions, but whatever the cause, we have to ask the question:

“How in the world can I trade without letting my emotions get the better of me?”

There are several answers to this question, but one of the MOST important things you can do is to make a Trading Plan.

A trading plan is NOT just a strategy.

Many traders out there think all they need to do is write down the rules of their strategy and then their plan is done.

In fact, most of them only put down their entry rules and how they determine their initial take profit & stop loss.

After working with aspiring traders for many years, we determined there is SO much more that needs to be a part of a traders plan in order to help them steer clear of emotional decisions.

1. It all starts with identifying your actual goal (we like to set that to how many pips per hour).

A great recommended starting place for our traders is 10 pips per hour with a maximum of 2 hours per day.

2. You have to establish WHEN you’re planning on trading. The market tends to behave in a similar fashion at certain times of the day and its in your best interest to get used to one specific time consistently.

3. Also determine now which market you will be trading. Is it the NASDAQ? The DOW? A currency pair like EUR/USD? Pick one to start so you get familiar with it’s movements.

4. Pre-trading routine. Check your emotions, look at the news for the day, read your trading plan out loud, watch the charts for a bit to get an idea of the market for the day and exercise any forecasting you have in place.

That’s 4 steps to the plan BEFORE we even get to the strategy itself!

When it comes to the trading part of the plan, there are ultimately 3 parts.

1. What does an entry look like (what are the MUST obey indicators and what are the “would be nice” indicators)?

2. Stop Loss Management. Where do you put your initial SL and how often will you move it during the trade?

3. Take Profit Management. Where do you put your initial TP and when would you move it to a new target during the trade?

Then finally, you should have an “After the session” part of your Trading plan.

When you’re done for the day, what do you do?

Most traders walk away, but the pros have a routine.

We will review the trades we took, mark up our charts with where we entered and exited, and take some screenshots to file away for future reviews.

We then put in notes per trade on what we did well and what we didn’t do well.

Finally, we submit all that info to our trading coach so they can review it all as well and provide golden feedback.

With a plan THAT thorough and reading it out loud every day, no matter what the market throws at us, we can remain calm and collected and trade as a legitimate pro.

If you’d like to get your hands on an example Trading plan, all you have to do is talk with our team about becoming a member with us.

Book a time below and during your call, we will give you a link to an example Trading Plan you can use right away.

When you connect with us, we will talk about your trading journey so far and what might be some of the hangups you’re currently experiencing.

Of course we’ll discuss membership with us and what we might bring to the table to help you finally reach your goals of being a consistent and reliable pro trader.

There has never been a better time than now. Only 12 spots left this month!

Look forward to seeing you on the inside.