One of the biggest mistake newbies make is that they only focus on potential entries; such as buying or selling. Some even pay money to get trading signals and trust me these signals’ sellers are making lot of money via subscriptions.
I have created this video about the 8 effective steps to build a robust trading plan and it contains the below example.
In sports, such as football, basketball, MMA, Tennis, etc. you have a coach. This coach creates a game plan and let his or her player(s) practice it in order to memorize it and apply it in the next game or fight
This game plan includes all sort of scenarios:
- If this happens we will do this.
- What should we do if we scored a goal or won a round.
- When should we play defense or offense, or just waste time.
- Which strategy we will use, and
- Let us not forget about the psychological preparation before, during and after the game or fight. Etc.
Now let us image a fighter just punch when he/she sees an opportunity but without protecting himself/herself. Playing just offense without defense. Not having a coach (mentor) to tell him/her what to do now, etc.
I would like to always remind myself first and everybody else of the importance of having not just a trading plan but also a mentor.
Feel free to share your thoughts guys. I really appreciate it