Trading plans don’t work forever.

One of the biggest challenges traders face is not letting emotions affect their decisions. It is very important (and often times difficult) to remain objective when reading price action. In my case, having well defined entry and exit rules help me stay the course. In the chart below, you can see the entry and exit for WWWW which reached its target today. The stock might go higher from here, but there is a great risk of a turn lower after touching a previous price area where it found a large supply. Specially within the context of the negative price action in the market.
Coming up with a trading plan is not easy and it is not the end of the road. A good trader always keeps tabs on the plan’s performance. I programmed this basic free trade analysis tool to help you see how well your strategy is performing. Of course, more advanced performance analysis features can be used in the Journal.

WWWW Target Reached

About Stock Trade Journal

The information in this blog is not investment advice. Please consult a financial advisor before investing. I have been trading stock since the 1990's and survived the .com crash. I am developing software applications to help me trade better and now I am making them available to help other traders. This blog is also a way to share my experiences and observations in the market.
This entry was posted in Risk Management, Trade Analysis, Trade Entries, Trade Planning and tagged , . Bookmark the permalink.

One Response to Trading plans don’t work forever.

  1. Trading a plan takes time. The key is to keep your risk consistent with every trade.

    Understanding risk is the holy grail of trading. It was the last thing I learned when I was a beginner. It should’ve been the first thing I learned. As soon as I learned where to exit, how much to bet, when to enter, and calculating the loss before the trade is executed…… I started to make money

    As the old saying goes “Worry about the losses, the profits take care of themselves”

    Good luck fellas.

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