Sticking to the Plan

What this unit covers

See sticking to a trading plan as a practiced habit, and learn to tell a new fact from an emotion when a trade tempts you to abandon the plan.

By the end you will be able to

• Explain why habit in trading is a practiced skill, not a fixed trait.
• Identify whether an urge to deviate comes from a new fact or from emotion.
• Distinguish judging a decision by its process from judging it only by one trade's outcome.

How it starts: The Urge To Exit

1. You write a trading plan before the market opens and enter the trade.
2. Ten minutes in, the price dips slightly and your stomach tightens.
3. Nothing in your plan has changed, so why do you want to exit now?

Words you will meet

Trading plan

The written rules you set for a trade before you enter it, made when you are calm.

In this module: Trading Psychology

1. Fear
2. Greed & FOMO
3. Sticking to the Plan (this unit)
4. Building a Trading Plan