«…and Trade the Plan.»
Traders,
Step 4 of the 7-Step Guide to Trading is: Plan the Trade.
Making decisions on the fly is fraught with danger. Humans simply aren’t wired right. By default, we buy high and sell low. We cut winners short and let losers run. Our lizard brains were built to survive on the Savannah, not make rational financial decisions.
For all these reasons, it’s imperative traders map their trades ahead of time. This is when we’re the most objective and unemotional. It’s when you can survey the landscape with a sound mind, unclouded by the devils of fear and greed.
There are three parts to planning a trade: Stop, Entry, and Target.
Together, this trio answers the following questions:
- When do I enter?
- When do I exit if I’m right?
- When do I exit if I’m wrong?
Most traders focus on the chart to guide their plan. They use trend and support/resistance levels to help decide the best times to pull the trigger, ring the register, and abandon ship.
🛑 Upcoming Webinar › Trading for Beginners: The 7-Step Guide to Trading with Coach Matt Justice | April 25th at 8:30 PM EST on YouTube
Learning to trade properly requires a process. This Free Trading Course will help you develop that process so you can make good decisions at each step. Join Matt Justice in this webinar to get an understanding of the 7 steps taught in this course 👉 https://bit.ly/7stepstotrade
① Start at the Top of the Market
② Choose a Trading Strategy
③ Find & Analyze Potential Candidates
④ Plan the Trade
⑤ Execute the Trade Plan
⑥ Manage the Trade
⑦ Journal Each Trade
Video of the Day: 7-Step Guide to Trading – Step 4: Plan the Trade
Step #4: Plan the trade. A Professional Trader has a plan. They know what they’ll do even before it happens. Planning is crucial for success in all areas of life, but it’s particularly important when dealing with investments.
Chart of the Day: Freeport-McMoRan Tumbles on Earnings ($FCX)
Cash flow darling Freeport-McMoRan tumbled on Thursday after reporting earnings. The entire metal and mining space saw heavy profit-taking as well.
Today’s line up
Traders Lounge 11 AM EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
Cash Flow Club Replay
If you missed last night’s episode when Gino Poore talked about Theta Trades or would like to watch it again, check it out here.
Halftime Report 12:30 PM EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day, and fun in a way that only Matt and Tim can deliver.
Women in Trading MasterMind Group 8:30 PM EST
Once a month we’ll be hosting a live webinar featuring Women In Trading with Coach Emily. Get in the game!
Financial freedom is a journey
Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.
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