Why You Need A Trading Plan

Another great article by Dr. Pipslow:

• Plan the Trade, Trade the Plan, or Else

Consistency is Crucial

One must trade consistently, following a specific trading plan on each and every single trade. If you trade one approach this time, and a different approach at another time, your performance will more than likely be haphazard.

You have to allow the law of averages to work in your favor, so that across the series of trades, you will make an overall profit. If you follow the plan sometimes and abandon it at other times, you throw off the probabilities, and you will end up losing overall.

With discipline comes profitability. Don't let unjustified wins interfere with your ability to maintain discipline. Follow your trading plan, and cement in the mindset that if you follow your plan, you will end up more profitable in the long run.

The article did a very good job at explaining what are the justified and unjustified wins plus the importance of maintaining trading discipline.

I became a very good system follower when I first launched my forex day trading group. I had stored almost 39 weeks of trading data consistently since it started. I had no intention of stopping yet.

Then, I became a fan of my own mechanical systems. All of them will help carry me far into 2009.