Sunday, January 1, 2012

New Year Resolutions - Jan 1, 2012

It is time to make New Years resolutions. Let’s see – the usual ones are lose weight, save money, reduce debt, conquer some old weakness etc. As far as trading is concerned, my New Years resolution are
-         Fine tune my trading plan and stick to it.
-         Follow my trading systems.

Where could I do better? I have good technical systems certainly but the subtleties of their signals leave one in doubt and sometimes cause me inaction. So perhaps I need to add another couple of resolutions
-         Be clear on the rules I will follow for entry and exit signals
-         Then execute perfectly every time.

A friend of mine took a class from a successful day trader and he remarked that what impressed him the most about him was that with his rules there was a right time to enter a trade and a right time to exit. When the right time came, he would execute the trade.
The day he was apprenticing under this trader, his trade was doing very well. But you could not tell looking at the day trader’s expressions whether he was making money or losing it. He was executing his system perfectly. That is what I strive to do…My systems will make me the money if I keep the rules clear and follow it.

Let me be a human who can define the trading rules very clearly but also a robot that I may follow them perfectly.

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