Plan Your Trade, Trade Your Plan
“Go wherever the wind takes me”
This is something we’ve heard multiple times and is sometimes interpreted as being free-willed, adventurous and open minded. Some will even say it’s romantic. It is all of those and more, but in the right situation.
Trading, isn’t one of those situations.
It isn’t one of those things you do with no consequences. You’re playing with real money, which can be lost in the blink of an eye. You lose in monopoly and you get to go again. But you lose all your money while trading, you’ll be having to make some life-altering decisions.
So how do you prevent this from happening? By doing what we all hear so many times but never implement, which is “planning your trade and trading your plan.”
What does this mean? Let’s break it down a bit:
Carrying out extensive due diligence on any trades you’re looking to get into. What are the tickers you want to get into? Why do you like them? How much are you willing to put into the trade/s? How much are you willing to lose?
Not following the crowd simply because they said it’s going up. You need to find out why it is going up. What is the right entry and exit for the play you’re about to take? What profit margin you’re comfortable with?
Sticking with a limited number of plays per week. In trading, especially for those just starting off, less is more. As you get more comfortable with trading, you build your positions in those trades.
Have a watchlist of tickers you’re familiar with. These could be from the household materials you use, your phone maker, your dream car etc., whatever it is that you like, know and are familiar it. Have it on your watchlist and get to know how their stocks perform. This list can always be refreshed, but it gives you a start.
Make use of a support system that’s willing to help you grow. Gold Rush is that support system for many traders. The weekly watchlist allows us share the tickers we all are looking at, why and what we think the exit, entry and profit margins on those plays are. It also allows you ask questions on specific tickers you’re interested in. This is a resource available to you for free. Utilize it.
Trading isn’t a romantic endeavor.
It isn’t all fun and games. It requires discipline and adherence to a strict strategy that begins with “Planning your trade and trading your plan.”
Wise words from TMoney. Follow him on Twitter and IG. Gold Rush is currently offering a 7-day free trial on our private server. Click here to test drive Gold Rush today.