#TradingMistakes101 Trading Without a Plan

Trading plans should serve as a general guide during time spent in the markets. They should include a strategy, time commitments, and the amount of capital you are willing to invest.

After a bad day in the markets, traders may be tempted to abandon their plan. This is a mistake, as a trading plan should be the foundation for any new position. A bad trading day does not mean that a plan is flawed, but simply means that the markets did not move in the anticipated direction during that specific period.