wisdom: plan each trade
the success of any venture often depends on having a realistic plan.
in a future post I will cover creating a general trading plan, but as well as having an overall plan, your chances of success are greatly improved if you have an individual trading plan for each and every trade.
each stock is different, even the same stock can act different at different times, so it is sensible to tailor a plan to deal with each different scenario. in daytrades i am only interested in trading a short rally in price.
the plan for SEN was to buy and get out quick. this is currently a fast moving stock and we only want to be in it while the momentum remains strong.
on the other hand SMM is in a trading range, so we must trade it as such. we cannot assume it will break from this range just because we buy into it. once we reach the limits of the range we are aware that there is the possibility of a break, but we must trade the market as it is now, not how it might be in the future.
in a future post I will cover creating a general trading plan, but as well as having an overall plan, your chances of success are greatly improved if you have an individual trading plan for each and every trade.
each stock is different, even the same stock can act different at different times, so it is sensible to tailor a plan to deal with each different scenario. in daytrades i am only interested in trading a short rally in price.
the plan for SEN was to buy and get out quick. this is currently a fast moving stock and we only want to be in it while the momentum remains strong.
on the other hand SMM is in a trading range, so we must trade it as such. we cannot assume it will break from this range just because we buy into it. once we reach the limits of the range we are aware that there is the possibility of a break, but we must trade the market as it is now, not how it might be in the future.
posted at: 10:25 am
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