[FOREX 101] The Top Ten Mistakes to Avoid (Lesson #2)

MISTAKE # 9

NOT HAVING A TRADING PLAN

Suppose you called your 401K manager this afternoon.

Suppose you asked him “What is your plan for the next six months?”

Suppose he told you “Oh—whatever. I just try to get on the right side and if I don’t I just get out.”

How long would that guy be managing your retirement money if you had any say in the matter?

Many traders take the same attitude with their daily work habit and many don’t even know they do it. Not having a clear and concise plan for your daily trading presence is a serious mistake and you need to address it.


Plan the trade. Trade the plan.



HOW TO MAKE THIS MISTAKE WORSE:

Base your trading plan on hypothetical profits or on how well you did paper trading.

Ignore your personal emotional needs when compiling a plan, Ignore your family while making a plan, keep thinking you can trade everyday or al the time, average your potential over a period of time and think results will equal a daily amount.


SOLUTION:

Ask a professional trader to show you his daily/weekly/monthly or annual trading plan. Ask yourself if you can make a plan that addresses similar things. If the professional you have selected can’t show you or won’t show you his plan then ignore what he has to say. If he isn’t using a plan then he is likely unable to assist you in building wealth.