Develop a trading plan and stick to it from "summary" of How to Day Trade for a Living by Andrew Aziz
When you start day trading, it is crucial to have a trading plan. This plan should outline your trading goals, strategies, risk management rules, and criteria for entering and exiting trades. Developing a trading plan involves carefully considering your financial situation, risk tolerance, and trading style. Your trading plan should be based on thorough research and analysis of the market. You should be clear about the types of securities you will trade, the timeframes you will focus on, and the indicators you will use to make trading decisions. Your plan should also include rules for managing your trading capital and limiting your losses. Once you have developed a trading plan, it is important to stick to it. This means following your plan consistently, even when emotions are running high or when the market is unpredictable. Deviating from your plan can lead to impulsive decisions and costly mistakes. Sticking to your trading plan requires discipline and self-control. You must resist the temptation to chase profits or avoid losses by straying from your planned course of action. It is important to trust in the research and analysis that went into developing your plan and to have faith in your ability to execute it effectively. In order to stick to your trading plan, it can be helpful to keep a trading journal. This journal can help you track your progress, evaluate your performance, and identify areas for improvement. By reviewing your journal regularly, you can reinforce your commitment to following your plan and make adjustments as needed. Remember that developing a trading plan is just the first step. The real challenge lies in sticking to that plan over the long term. By maintaining discipline, managing your emotions, and staying true to your trading goals and strategies, you can increase your chances of success in the competitive world of day trading.
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