How to Approach Trading - Part 1
Develop a Trading Plan: The main message I want traders to understand is how important the disciplined execution of a well thought out trading plan is in today's markets. Nobody knows for sure what a given market will do next. Having a plan of attack will allow you to successfully cope with the uncertainty that is an inherent part of trading. I think it makes good common sense to have a well thought out plan of attack for trading all markets.
Make time to study and organize a trading plan for each and every trading day. This is a serious business that requires dedication and discipline to succeed. Arm yourself with the best tools you can find and make sure your own personal armor has no weak points. Trade with an objective of doing the right thing, which is sticking to rules!! Making money, which is a second objective, derives from sticking with your trading plan. Let your strengths be in that you are a trader who is able to take losses quickly and think defensively. Learn to use a time stop and if prices are not moving your way when you expect them to, get out. Also be quick to take some profits when they are there but leaving the bigger part of your position in the market in case the move is strong in the direction you want it to go.