The Importance Of Sticking To The Trading Plan

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Having a trading plan is vital. That said, it is worthless unless you stick to it.

In this video I discuss how the volatility with Tesla this week has shaken things up a bit. It was my trading plan that overcame the emotions that arose.


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True. The more we are able to take emotions out of our trades, the better the traders we become.

Easy thing to say...much harder to put into practice unfortunately. Humans and their emotions. What are you gonna do? 😁

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some traders are fond of ignoring their trading plan or let me say they do not even have an effective trading plan,the truth is that having a trading plan and sticking to those plans are necessary if you want to be a successful trader...awesome post from you @taskmaster4450le

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Summary:
In this video, the speaker discusses the importance of adhering to a trading plan, using his recent experience with Tesla as an example. He describes the volatile movements of Tesla's stock, emphasizing the need to overcome emotions like fear and greed in trading. Despite facing temptations to deviate from his plan, he highlights the importance of sticking to the predetermined rules to avoid making impulsive decisions that may lead to missed opportunities or losses.

Detailed Article:
The speaker starts by recounting a recent event involving Tesla's stock, highlighting its significant price fluctuations. He mentions the stock opening up around 140-230 points on Monday, then dropping back down by 40-50 points by the end of the day, illustrating the extreme volatility in the market. The speaker acknowledges the challenge of dealing with such intense price swings, especially when holding a substantial profit in a stock like Tesla.

He delves into explaining his trading strategy, which involves using technical indicators like the 5 and 13 EMA crossover to make decisions. Despite the market's unpredictability, he stresses the importance of following one's trading plan strictly, even when facing moments of doubt or fear. The speaker admits to feeling tempted to deviate from his plan, especially after experiencing losses, but highlights the necessity of maintaining a disciplined approach.

Moreover, he touches on the psychological aspects of trading, mentioning the significance of key levels like $100 or $1,000 in decision-making. He reflects on a specific scenario where he sold Tesla stock prematurely due to emotions, ultimately missing out on potential profits when the price surged past $1,000. This instance serves as a lesson on the repercussions of not adhering to one's trading rules and the impact it can have on returns.

The speaker concludes by emphasizing the importance of sticking to a trading plan to navigate the uncertainties of the market successfully. He underlines the need to overcome emotions such as fear and greed, which can lead to impulsive actions and missed opportunities. By urging viewers to follow their trading parameters diligently, he stresses the significance of discipline and consistency in achieving long-term trading goals.

In essence, the video serves as a valuable lesson on the significance of maintaining a structured trading approach, highlighting the benefits of controlling emotions and adhering to predetermined strategies in the face of market fluctuations and pressures.

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