Have many traders actually thought about how much control they have of their trading? In making decisions, traders must deal with the full range of emotions that humans can experience, from exultation to despair. In this video, Stuart McPhee (from www.trading-plan.com) explains how some parts of a trading plan are easy to control; however there are some that are quite difficult, if not impossible, to control. The point at which we can exercise the greatest control is the point of trade entry. It is here that we can use the various analytical tools and indicators available to us and decide whether or not to enter the trade. We have the maximum control here because we can decide not to enter the market if our trading plan shows us that conditions are not right. Consequently, you could suggest that trade entry is an easy part of trading — we can decide to do as we want. The situation changes completely when the trade has been entered. Countless possibilities arise, most of which cannot be controlled. This is an interesting situation that confronts all traders. Even though we may have exercised great control in deciding whether to enter a trade or not, we simply cannot control what happens in the market.
Video Rating: 5 / 5