What’s one of the top reasons newbie traders fail?
It’s not because they’re incapable … It’s because many lack discipline and force trades that don’t fit their strategy.
In other words, they don’t have a game plan.
If this sounds like you, know that you’re not alone. I understand the temptation to make trades that don’t perfectly fit your plan…
After all, there’s nothing flashy or exciting about sitting on the sidelines.
That said, you’ve gotta have serious patience and discipline to make it as a pro trader.
The same goes for me. If I weren’t so patient, I never would’ve made it this far in the stock market…
Had I forced trades early on in my career, I wouldn’t be writing this today.
Instead, I’d probably be part of the 90% of traders who LOSE MONEY. No thanks!
Try to be like a zen master … sitting on your hands until the perfect opportunity comes along.
Remember: One great play probably won’t make your career. But if you aren’t careful, one bad options trade can ruin it.
Keep reading and I’ll show you how to make a game plan and stick to it without forcing trades…
Plan Your Trades and Trade Your Plan
Earlier this week, I talked about the importance of keeping a trading journal, which leads perfectly to the idea of sticking to your game plan.
They go hand-in-hand. By tracking your data, you can get a comprehensive understanding of how well you’re sticking to your trading plan.
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This is a tool you’ll want in your trading toolbox.
And your plan is one of the most crucial aspects of your trading arsenal.
I plan every trade I make — and I upload them all to Profit.ly.
Within those plans, I make notes about where I expect the stock to go and where I’ll sell if I’m wrong.
Most of the time, if the stock doesn’t start doing what I expect immediately, I cut it. And this discipline has prevented me from ever experiencing a big drawdown in my account.
There’s a reason Tim Sykes’ #1 rule is to cut losses quickly!
You can always get back into a stock if you’re wrong the first time.
So if it’s not going your way, get out. And if it starts approaching your planned exit, take profits.
Don’t get greedy. Momentum stocks can reverse and fall fast (and most never come back).
If you make a trading plan and always stick to it, you’ll be setting yourself up for success as opposed to disaster.
And one way to do this is to avoid forcing trades…
Don’t Force Trades
The most common way I see traders stray from their game plans is by forcing trades.
Most traders get into trading because they wanna make more money and find financial freedom. But make no mistake — trading isn’t like other jobs.
There’s no such thing as guaranteed money in this game. Sometimes there aren’t any good trades out there. That’s just the way it is.
Growing A Small Trading Account? Check this Out
When multi-millionaire trader Mark Croock first started trading, he was an overworked and underpaid accountant…
So he knows what it’s like to start small while wanting to massively grow your wealth as quickly as possible.
That’s why he just recorded a step-by-step training that reveals what he believes is the best options trading method for someone trading with a small account.
Forcing trades comes down to taking a subpar trade. Most of the time, you know it’s not a good setup … But you feel like you should trade, whether it’s out of boredom, greed, or FOMO.
But what’s the difference between a forced trade and a good trade?
For newer traders, it can be hard to tell the difference…
For me, one main difference between a good trade and a forced trade is the quality of the setup.
During a hot market, I trade more because my favorite patterns pop up left and right.
But if your ideal setup isn’t appearing and you’re still going for it anyway, you’re forcing trades. It’s usually because you’re feeling greedy.
Don’t worry. I still force trades here and there. The temptation is strong … it never completely goes away. This desire will always be there.
You’ll never completely eliminate this kind of FOMO. What you’ve gotta do is recognize it and learn to control it.
When the urge to take a subpar trade comes along, ask yourself … does this setup fit my game plan?
If the answer is no, close the chart and move on.
Making a game plan isn’t easy. It may take months or years before you develop a plan that works perfectly for you.
But if you don’t make a plan and stick to it, you might as well be stuck in the middle of the ocean without a raft. You won’t make it in the markets.
Keep track of every trade and make sure your plays are fitting into both your near-term and long-term goals.
That way, if you notice yourself trying to force trades that don’t fit your plan, you’ll be able to adjust immediately BEFORE it’s too late.