Advances in technology have enabled retail investors to participate in opportunities in any market. One click on a computer can access markets anywhere and anytime.
One of the benefits of electronic trading is this level playing field where all orders are treated equally and no preferential treatment.
Tight bid/ask spreads and liquidity to enter or exit smoothly have made for more efficient execution of a disciplined trading plan.
The combination of electronic market access and ample buyers when you want to sell, or ample sellers when you want to buy, let you plan your trade and trade your plan.
Entry and exit criteria should be pre-determined before getting into a position. The disciplined plan is best formulated without the emotion of moving prices that feed greed and fear.
The exit strategy should be established for both when the trade moves for you and against you.
The trade risk in dollars needs to be determined prior to entry. That ensures that an objective analysis of the trade impact is considered.
Being stopped out isn’t a bad thing. Frustrating yes, but a necessary reality for disciplined traders.
A stop loss is designed to limit losses. It is a must for each and every investment unless you have unlimited capital to ride through swings in equity.
No one trade should have a dramatic impact on your account financially or your mindset.
Always remember that new opportunities will come tomorrow and forever.
Being wrong is part of the process with acceptance crucial for long term success.