Mar 26, 2014

TRADERS: WHEN TO BE FLEXIBLE, WHEN TO BE RIGID

TRADERS: WHEN TO BE FLEXIBLE, WHEN TO BE RIGID

1.    Traders should have a very flexible mindset about which way a trade can go when they enter it, but be very rigid about taking their stop loss when it is hit.
2.    Traders should be very flexible on profit expectations during each market cycle but very rigid about following their robust method during each cycle.
3.    Traders must be very flexible about allowing a winner to run but very rigid on cutting losses short.
4.    Traders must be flexible about their opinions and change them when proven wrong but they must be rigid about their risk management and never risk more than planned.
5.    Traders should be flexible about their watch list but rigid about their trading plan.
6.    Traders should be flexible about what will happen next in the market but rigid about their rules.
7.    Traders should be flexible about the direction of the trend when it changes but rigid about positions sizing.
8.    Traders should be flexible about profit targets but rigid about entering with a minimum risk/reward plan.
9.    Trades should be flexible about entries and exits as the market action develops but rigid about managing the risk of ruin at all times.
10. Traders should be flexible about expectations on when they will have a huge winning streak that will change their financial lives but rigidly pursue success in the markets until it does happen.

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