There are also many-many other things that you should consider before and during the trade.
• For example – position sizing.
Your positions are supposed to be in sync with your abilities and with your trading style. The important thing to remember here is that you are not gambling, but trading. You are to come to your positions with care and with thoughtfulness.
Like to the portions of your food.
If you keep track of the size of your positions, you are going to be better prepared for the future trades.
In fact, the web is filled with different calculators which are going to help you understand what size a position you should risk.
• Then you have to count your trade right through.
Imagine – you are playing a video game. And you counted al of the outcomes, your every move and turn are calculated and thought-through. And in the end you come out a winner. That is a cool concept. And the great thing is that it is totally possible to do that in real life as well!
EVEN IN TRADING!
You have to count and write down every possibility and every move of the markets. You need to count what and when you are going to do in every possible scenario. You are to be prepared to anything that the markets are going to throw down at you.
And you are to do it with grace.
Trust me, nothing is going to bring you as much success as your trades all calculated through.
After your trade is complete and down, analyze it. Be sure that you are in great shape and that your losses have not exceeded your limit and that your winnings went through the roof! You have to look back at everything that you have done and at every decision that you have made and think to yourself – have you been faithful to yourself and to your trading plan? What mistakes have you made? What are you going to do different next time?
These are the things which are not necessarily something that we pay attention to, but it definitely something that we SHOULD pay attention to.