The Importance of a Trading Plan
The secret of success on the exchanges is not to make money fast, but to make it consistently.
One of the most difficult accomplishments for traders is to create a portfolio that builds up equity over the long term, independently of market conditions. To reach this goal, it is essential to work with a reliable investment strategy and to guard against being greedy.
Feel Comfortable with Your Trading Strategy
Successful traders begin the morning with a trading concept that they can use comfortably for executing trading signals throughout the day, no matter what the markets are doing.
Feel good about your trading strategy as long as the real-time trading results are in line with the historical test results. If the maximum drawdown gets bigger than the drawdown of the historical test results, reevaluate the trading concept.
Nothing Is More Important than Discipline
Value of Available Trading Concepts
Many worthwhile trading concepts are available. But none of them will always make money. An effective trading concept does not have to be difficult, but it must be executable. The trader has to believe in it and be willing to trade it even after a string of losses.