WHY A GAME PLAN

The main reason for a game plan is to keep you focused on the market
while helping you to make the best possible trading decisions you can.
Without a game plan you can be compelled to trade on whims, out of boredom,
because of a news event, to recoup losses, or because some other
trader liked it. These types of trades are the result of either not having or
not following a game plan. With a good game plan, a trader can have different
strategies for different scenarios and will know how to react regardless
of what the market does. The market is unpredictable and a trader needs to
be flexible when trading. If something happens, he’ll hopefully be prepared
for it, making only anticipated trades instead of trades made for the excitement
of trading. Sure, by being more selective, there will be times when, in
hindsight, you will wish you’d made a big trade. But unless the trade is part
of your plan, it’s okay to miss it. So what if you miss a few trades, there will
be many more trading opportunities, so don’t worry about capturing every
move of the market. Instead, focus on making the best trades.