A Bad Trade Plan Is Better Than No Trade Plan
Updated
Traders often talk about the need to be patient but to be patient, we must know what we are being patient for. That is why we have a trade plan and know ahead of time exactly where to enter, where to place a stop, where to exit, and how much size to put on.
In this post I continue with our trade planning exercise of 30 planned trades by making a trade plan for LEN. Keep in mind that the exercise is all about learning consistency and discipline and not about the method or whether the trade wins or loses.
In the video, I speak of not being worried about losing all 30 trades in a row. It's not that I have steel nerves, it's that i have planned ahead of time for 30 losses with my position size.
Shane
In this post I continue with our trade planning exercise of 30 planned trades by making a trade plan for LEN. Keep in mind that the exercise is all about learning consistency and discipline and not about the method or whether the trade wins or loses.
In the video, I speak of not being worried about losing all 30 trades in a row. It's not that I have steel nerves, it's that i have planned ahead of time for 30 losses with my position size.
Shane
Trade active
LEN has been entered according to the written trade plan. The next step is to simply follow the plan with discipline. One of two things happens at this point. It either stops at 146.80 or moves to break even at 156.01.Trade active
Price has hit 3R so moving profit stop to 1R at 152.94. Note: I made a clerical error in the template and a previous comment about moving to b/e. I use 2 entry techniques in all of the setups. One enters with a confirmation buy stop at the 50% line and a stop loss at the 25% line and has no B/E in the management (LEN). The other uses no confirmation and enters with a limit at the 25% line and a stop at the pivot low and does have a b/e in its management.Trade active
Price has hit 4R. Moving profit stop to 2R (156.01).Trade active
LEN has hit 5R, moving profit stop to 3R, and will exit at 6R.Trade closed: stop reached
Exited LEN 159.08 according to plan at the 3R trailing profit stop.
Method, Management, and Mindset
Learning through consistency and discipline
Learning through consistency and discipline
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