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No doubt you have heard that at some point in your trading carer or from others who trade, so we thought it would be appropriate for us to take a closer look at this saying and see if it really holds up.
Even though a lot of trading educators and ‘gurus’ tell you to trade with the Trend, they never clearly define a Trend.
OK then, What is a Trend? Well, let’s keep it short and sweet
It’s true. The best traders stay disciplined by sticking to their trading plans.
Trading by plan lets you know when to get into a trade and when to get out. (It isn’t an angel’s voice whispering in your ear every time you’re about to get greedy, friends. It’s the plan.)
If you’ve got a plan, it’s easier to stay objective and avoid revenge trading if things go south, as they will from time to time. And you’ll keep your mind focused and decluttered. No emotion allowed when you’re trading, remember? (Unless you’ve just won a trade and it’s party time.)
So, discipline, good. Gut instincts, bad.
The problem is, to practice your craft, you’ve got to actually get in there and play the market. And that means exposing yourself to a whole bunch of psychological obstacles you’ll need to be able to deal with effectively—pressure, fear, anger, uncertainty, etc.—if you want to come out on top.