Discuss and disagree with explanations
Do:
Plan each trade. Start from higher time frames and work down. This saves from shortsighted trades.
Place a stop on every trade
Define the profit target:
If rangebound set fixed value for tp at range extreme
If trending take partial profits at next supp/resistance
and ride the rest until trend end signal
Constantly update chart with support and resistance. Draw trend lines. Rely on the visual aid to make it easier to trade. You want to spend your concentration on the trade ideas, not trying to spot lines which aren’t drawn. The goal is to try to make trading simpler and easier.
Journal emotions and how trading in general is going. Write down specific things you’re struggling with and what you’re doing well. Write down only important trades, too much info is a waste of time and splits analysis from what really matters.
Quality over quantity with trades and journaling.
Practice gratitude and patience. This will keep you grounded in reality and prevent moronic blunders.
Don’t:
Move stop, unless trending sharply and trailing to catch on a massive move. This is only done when partial profits have already been taken. Otherwise stop mustn’t move forward or backwards. The initial plan was made at the level specified. The purpose of the stop is to invalidate the trade idea and allow you to move on to the next trade.
If the stop is moved then this cannot be achieved. In addition it also means you haven’t accepted the risk on the trade. You must be comfortable with the market showing you a profit and then giving you a loss. Avoiding this loss is more costly than taking it. This provides clarity of thought and reduces stress and anxiety.
Trade impulsively, revenge trades and not fully thought out trades are included here. Trades made for the sake of trading.
Add to losing trades. If you’re trading congestion this can be very profitable but it’s hiding a poor profit taking strategy. Rather take profits better and be prepared to miss out. This will reduce risk but also if there’s a flaw in the profit taking part then you’re not always going to realize a profit from the additional trade. So when the trades don’t work out then in the long run you’re just losing more money.
The extreme case is where you add on too much and generally it works out but in a trend you’ll blow the account or take a huge loss.
Forget about the bigger picture. Remember to analyze from the higher timeframes down to the lower