One of the major mistakes that traders make is that they do not stick to their trading plan. They manage to come up with a good trading plan, in fact, it might be one of the best around but they spoil it by not following the rules of the plan. Lets take the euro for example. Our crossover strategy tells you that euro might be in an uptrend soon. But when you read the news, you see so many bad things being said about the euro. How it is going to collapse, yields are rising, Spain is on the brink etc.
Irrespective of the pair you trade and the direction that you choose to trade in, you will always have news to the contrary. They do not make anything necessarily clear to you. Rather, they can make it quite confusing . This happens each and everytime that you take a trade, especially swing trades. This is because these trades get affected by news all around and so you go around seeing news and easily get misguided by them. Secondly, when you swing trade, you have so much free time that you spend that reading up news wherever you can get it from and they basically confuse you, induce doubts in your trade and ultimately, you either bail out or dont take the trade at all.
This can happen easily for us when we try and trade the euro now. Our simple strategy points up but all the news is negative. So, we can easily be misguided into not taking the trade at all. Or bailing out if we are in already. This is why it is so necessary to believe in the system.
Before you decide to trade a specific plan, test it thoroughly and spend time and effort in analysing whether it really works. Once you are convinced that it works, follow it strictly and just shut out everything else when you are trading. Better you go out or get some good hobby or get some other work to do when you are in a trade. The mistake that you can make is not to follow the rules of the plan cos someone told or you read something to the contrary.
Irrespective of the pair you trade and the direction that you choose to trade in, you will always have news to the contrary. They do not make anything necessarily clear to you. Rather, they can make it quite confusing . This happens each and everytime that you take a trade, especially swing trades. This is because these trades get affected by news all around and so you go around seeing news and easily get misguided by them. Secondly, when you swing trade, you have so much free time that you spend that reading up news wherever you can get it from and they basically confuse you, induce doubts in your trade and ultimately, you either bail out or dont take the trade at all.
This can happen easily for us when we try and trade the euro now. Our simple strategy points up but all the news is negative. So, we can easily be misguided into not taking the trade at all. Or bailing out if we are in already. This is why it is so necessary to believe in the system.
Before you decide to trade a specific plan, test it thoroughly and spend time and effort in analysing whether it really works. Once you are convinced that it works, follow it strictly and just shut out everything else when you are trading. Better you go out or get some good hobby or get some other work to do when you are in a trade. The mistake that you can make is not to follow the rules of the plan cos someone told or you read something to the contrary.
