why don't you stick to your plan?

[tape reader]

Okay, this is not for traders using an automatic entry/exit system.

Jesse Livermore said the reason most traders fail is because they're trading without a plan.
Being a discretionary trader I am trading my plan (meaning "I have one").
However being only human I ain't perfect either.

So my question to you is what are the reasons you are not sticking to your own trading plan ("breaking the rule")?
And do you profit or suffer from your misbehavior?
Or are you a trader who rarely makes any mistakes?

As for me, fatigue and stress are the reasons why I simply forget about my trading plan.
I especially lined out in my plan what not to do during trading.
The bad thing is when the trade turns out with a profit, it reinforces my bad behavior.
It's also that fatigue and stress promote the feelings of fear and hope.
The fear to open a position when my entry-signal comes.
And the hope of my position to turn around into a winner after not honoring my stop-loss signal.

Fatigue is my explanation for not following my plan.


Wanna share?

 

[UKtradergirl]

There are several reasons for not honouring your original plan. One is good the other is bad.

A 'good' way i break my own rules is when i see conditions which signal to me that my take profit levels are no longer viable and i should cut the trade where it is at, profit or loss. This can be any number of factors, including news events, trades that have been hanging for a long time tying up capital and going nowhere, etc.

I also break rules in a 'bad' way on occasion. Sometimes i think i'm doing it in a good way as detailed above but then realise afterwards i was actually acting out of emotion and a lack of discipline/patience. There is a thin line between the good and the bad rule breaking .

I suppose there is one more category- and that is the 'very bad' rule breaking. This includes chasing the markets, not quitting when you have had a string of losses, constantly moving your stoploss so you dont get stopped out, holding on to no hoper trades, overtrading, risking too much, trying to 'revenge' trade or make up for past losses.

I am guilty of all the above on various occasions.

 

[tomorton]

You don't have to have a perfect plan, but you must follow it perfectly. If not, how will you know how to improve the plan?

 

[Trading2k]

For me greed is the bigest problem. I see good profits and break my plan because I'm worried about a reversal then markets plough ahead and I'm sitting there with only half the gains. It's a very emotional game and it's a very personal learning curve. I am trying very hard to trade my plan these days.

 

[wouste]

I believe in order to be succesfull you have to follow a set of rules made by yourselfs.

 

[FXSCALPER2]

Plans are bollox basically. People look back and say, 'if I took that trade or didn't take that trade..' blah blah. Thing is, if they followed their 'plan' they would lose anyway. What and how you trade depends on what is happening now. The reason you are not following your plan is because your plan is sh!t and your mind knows it.

 

[tomorton]

Plans are bollox basically. People look back and say, 'if I took that trade or didn't take that trade..' blah blah. Thing is, if they followed their 'plan' they would lose anyway. What and how you trade depends on what is happening now. The reason you are not following your plan is because your plan is sh!t and your mind knows it.

Did somebody step on the tail of this tiger this morning?

 

[KillPhil08]

Because I'm Always right

 

[JTrader]

Okay, this is not for traders using an automatic entry/exit system.

Jesse Livermore said the reason most traders fail is because they're trading without a plan.
Being a discretionary trader I am trading my plan (meaning "I have one").
However being only human I ain't perfect either.

So my question to you is what are the reasons you are not sticking to your own trading plan ("breaking the rule")?
And do you profit or suffer from your misbehavior?
Or are you a trader who rarely makes any mistakes?

As for me, fatigue and stress are the reasons why I simply forget about my trading plan.
I especially lined out in my plan what not to do during trading.
The bad thing is when the trade turns out with a profit, it reinforces my bad behavior.
It's also that fatigue and stress promote the feelings of fear and hope.
The fear to open a position when my entry-signal comes.
And the hope of my position to turn around into a winner after not honoring my stop-loss signal.

Fatigue is my explanation for not following my plan.


Wanna share?

Thats not hope, and its not due to fear or stress. bUT It is the trading equivalent of a Kamikaze pilot in WW2.

 

[Paul71]

Plans are bollox basically. People look back and say, 'if I took that trade or didn't take that trade..' blah blah. Thing is, if they followed their 'plan' they would lose anyway. What and how you trade depends on what is happening now. The reason you are not following your plan is because your plan is sh!t and your mind knows it.

I agree with you. People read about the 'greats' then come on here and spout out what the 'greats' have mentioned in books and so on.

But it all falls down...

Firstly, the 'noob' trader takes what the 'great' has said and twists it into 'noob format', the 'noob' has no idea about the markets and thier workings so how can the 'noob' really know how to appreciate what the 'great' has said, and so it's taken out of context.

Livermores plan? I don't know what the finer detail was, but the most basic plan should be to work with the market and not against it, certainly not some crazy coding ideas using indicators and the like.

 

[wouste]

I agree with you. People read about the 'greats' then come on here and spout out what the 'greats' have mentioned in books and so on.

But it all falls down...

Firstly, the 'noob' trader takes what the 'great' has said and twists it into 'noob format', the 'noob' has no idea about the markets and thier workings so how can the 'noob' really know how to appreciate what the 'great' has said, and so it's taken out of context.

Livermores plan? I don't know what the finer detail was, but the most basic plan should be to work with the market and not against it, certainly not some crazy coding ideas using indicators and the like.

True!
Sometimes you need to adjust your system and addapt it at the current market.
If your not open for changes, you'll probablly get blown out each time.

 

[tomorton]

Making changes shouldn't take you outside your plan, your plan should be big enough to cover those possibilities that make changes profitable r:r, and the boundaries of your plan should be set by money management, not TA entry signals.

 

[Paul71]

Making changes shouldn't take you outside your plan, your plan should be big enough to cover those possibilities that make changes profitable r:r, and the boundaries of your plan should be set by money management, not TA entry signals.

Maybe understanding how buyers, sellers and value interact is not really a plan, that's just understanding or judgement. Like you say, maybe the only 'real' plan is solely based on your MM and how you apply it to your understanding.

So how can a newbie have a plan if they don't understand?


Good point.

 

[Paul71]

Indicators provide or fill the gap of understanding, a pseudo or placebo understanding, which provides the basis for a plan.

 

[tape reader]

.

So how can a newbie have a plan if they don't understand?


Good point.

Ah, I'm trading for living, you know.
I'm only a newbie in posting here.
The reason I don't contribute too much is because I'm just too busy trading.
My plan or setup or strategy works. and it's sh!t only for those on the other side of my trade.
Good writers don't make a good traders.

Funny how all you can tell how others are doing but not how you yourself are doing.
If trading without setups works for you, then fine. You are the only one who really knows.

 

[TheRumpledOne]

Once you enter a trade, you can enter an OCO order AND LEAVE IT ALONE.

Either your TP or SL is hit.

That way you don't "live and die" with each and every tick.

 

[Paul71]

Ah, I'm trading for living, you know.
I'm only a newbie in posting here.
The reason I don't contribute too much is because I'm just too busy trading.
My plan or setup or strategy works. and it's sh!t only for those on the other side of my trade.
Good writers don't make a good traders.

Funny how all you can tell how others are doing but not how you yourself are doing.
If trading without setups works for you, then fine. You are the only one who really knows.

Why/how do you come to the conclusion that i'm referring to you? It's a good job we're in the psycho dept, fitting really.