In stock trading, you must have a trading plan and stick to it (read: trading plan). With a trading plan your trading activities will be more neat and structured. This trading plan is like a plan so you can win a battle (read: get profit). Also read: Traits of Traders Who Don't Have a Trading Plan
Complying with the trading plan, for example, is like this. On December 29, 2016 I bought JPFA shares at a price of 1,440. At that time the market conditions were bullish the last few days. However, December 30, 2016 was the last day the market closed and because the JCI has rebounded rapidly, in my opinion there will be a potential for correction.
So, if on December 30, JPFA has gone up to at least 1,510, I will immediately take profit. I will not hold JPFA and wait for the price to correct again. That is a simple example of a trading plan.
In fact, many traders have tried to make a trading plan. But even though a trading plan has been made, it is very difficult for traders to implement it. All traders, including myself, must have violated their own trading plan. Why is it difficult for traders to stick to their trading plans? There are two causes.
First. Have you ever heard the " proverb " : Rules are there to be broken ? Now I'm going to make a rule for you Gain Stocks web readers: You can't imagine a herd of big white elephants walking around. What comes to your mind?
Didn't you just imagine it? Even though there is already the word "forbidden". Same with trading plans. When a trader has made a plan to take profit shares at a price of Rp. 2,000, and the share price has reached a price of Rp. 2,000, traders tend to find it difficult to sell their shares because they still expect the price of the shares to rise. Indirectly, there is always a psychological "instinct" to break the rules that have been made.
Second. The market is full of temptations. These temptations vary. For example: you decide to take a break from trading. However, that day also many fried stocks showed signs of going up fast. Are you not tempted to buy? If you are tempted, you are said to have violated the trading plan.
I have to admit, complying with a trading plan requires a fairly long process. Even now, I'm still learning to keep my trading plan. Trading plan in stocks not only includes trading plans within a week, month, year. But a trading plan is a plan to buy and sell shares which is carried out DURING MARKET HOURS.
Adhering to a trading plan is a discipline. So, so that you can be disciplined in trading, you must continue to learn.
