You should always get a game plan in place before making a trade. Getting caught on a emotional roller coaster is a sure way to end up penniless.
Points to Know:
- What is my maximum risk?
- What is my maximum reward?
- What is my break even point?
Make a plan:
- What is my entry point?
- What is my exit point . . .
- For taking profit or
- For stopping losses.
The most important part of your plan is to make a good plan and stick to it! Don’t let greed or fear over come you. It isn’t easy. I know. If you go outside the plan you will wish you hadn’t later. Remind yourself of that when the going gets tough. In the end you will thank your self, feel a sense of accomplishment, and control if you stick with it.