As with any successful business, it all begins with a plan. A business plan is nothing more than a roadmap or in the modern world a GPS system.
Imagine you had a restaurant business and everyday you would show up to your business and change your successful recipes'. You built a loyal following using your current PLAN but you change that plan every day or week. Ultimately, what do you think would happen to your loyal customer base? Over time, they could not count on previous choices which brought them to your establishment in the first place.
Eventually they would seek another restaurant that could give them consistency. Although it may not be as tasty as your food once was, people want consistency.
Trading is no different. It is far better to follow a consistent plan and slowly tweak that plan as you back test your results. I guess you could say, a weak plan that is consistent is far better than a stronger plan that is not written in stone.
It has been said that good trading is boring trading, at least in the moment. Your recipe or PLAN should be written as if you were teaching an 8 year old.
At first you have to remember all of the items listed in your plan. Over time, you will not even think about what you are doing, you will just react to a pattern that has been grinded into your trading habits.
If you find yourself approaching the market each day with apprehension and nervousness, you need to re-evaluate your trading plan. Either you don't follow it or you have no confidence in it therefore it should be back tested. Your plan should be as clear as a green light or red light when you are driving. I would venture to say that most traders today are color blind in that sense. If your eye doctor recommended glasses, don't ignore that professional observation. Just get the glasses or contacts and see your trading more clearly.
Get clear on your trading colors and see them vividly. Don't go another day without an eye examination of your trading plan.
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Interactive Trading Room Moderator
Gap, Intra-Day and Swing Trading Specialist
Instructor and Traders Coach