Well, Wednedsday is here, and we still have no trades worthy of taking - in actual fact, there is very little going on that I would be happy to get into at the moment. The markets seem to be going a little bit crazy, but my eye is firmly on the CHF at the moment.
Both the USD and GBP pairs with the CHF show some promise, but little else at the moment. It is certainly not a certainty of which way the trade woudl go if we got in right now. The CHF had a big dip and I am expecting it to rise again - how much and if it meets the criteria to trigger a trade - I am not sure. The best thing traders can do is to enter into trades without emotion.
If you have fear going into a trade, a couple of things will happen:
a) You will close the trade because it goes negative, and your initial thoughts were proved true - except that it goes to massive profitability... the fear meant that you got out of the trade against what the trading plan tells you!
b)The trade goes into profit straight away, has a little retreat and you close the trade with a small profit. Although this is not the worst scenario, again it goes against the trading plan which is bad for traders. I always say that you shoudl never begrudge the profits you make, but the whole point of being a trader is to follow your trading plan. This is your trading bible, and it is imperative that it is followed (otherwise you may as we try your hand at gambling).
Your trading plan is the one thing that puts you ahead of all the other traders out there, and the ones who follow the trading plan will be the ones who succeed in the long run. This can not be stated strongly enough.
Money management is the next level. If you have a trading plan, money management should be part of this in any case. I am going to look at putting something on my blog that can be downloaded for everyone which details what a trading plan should look like.
This is the most boring part of trading... but it is also the most important and vital thing. Ultimately, trading should not be exciting. If it is, you are opening up yourself to emotion - and most scarily greed. If this is the case, you will lose money. There is very few ifs and buts about this. As I mentioned in an earlier post - check out market wizards - this is a real eye opener in terms of mindset of traders (proftiable ones, and very successful ones at that!!!).
Anyway, here's to picking the RIGHT trades, and getting in (and out) at the right times!
Happy trading, and look out for the trading plan manual in the coming weeks or so.
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