Success is where preparation meets opportunity. Therefore create a good trading plan and stick to it. Consider goals, risk/reward, experience. Your plan should represent how you will approach the market each day.
What should a good trading plan include?
A trading plan takes into account your trading style, account size, and risk tolerance, among other things. A good trading plan narrows down your trades and cuts out the noise. Don’t overwhelm yourself with random stocks. Be picky and focus on stocks that fit your plan.
Do not overcomplicate your plan. It should be easy to understand. The hard part is having the discipline to stick to it.
1. Set goals
2. Know your patterns
3. Cut losses
4. Consider risk/reward ratios
5. Create a relevant watchlist
6. Keep a trading journal
Sven Franssen