You have to follow the plan without exception. Any valid reason for an exception - for example, correcting an oversight - should become part of the plan.

Overtrading

Sometimes the best thing to do is to do nothing. Not trading on those bad days is key to becoming a consistent winner – in some situations it is very tempting to overtrade:

If you trade to fulfill a need for action, to relieve boredom

If you can’t find the proper setup but can’t wait

If you fear you are missing out on a great trade or on a great market

If you want to make up for losses (revenge)

If you trade to feel like you are working instead of sitting around. Trading involves a lot of work other than the actual buying and selling.

You should not trade under the following conditions

You are not following my trading plan

You have reached your daily or weekly maximum loss

You are sick or very tired

You are very emotional (upset, pressured to make money, self-esteem destroyed)

You are using new tools you are not completely familiar with

You need time to work on your trading plan

A winning attitude

Losing traders look for a "sure thing", hang on hope, and avoid accepting small losses. Their trading is based on emotions. You must treat trading as a probability game in which you don’t need to know what is going to happen next in order to make money. All you need to know is that the odds are in your favor before you put a trade.

If you believe in your edge, which is you believe that the odds in your favor for each trade you enter, then you should have no expectation other than something will happen.

Your attitude will have a direct influence on your trading results:

Take responsibility for all your actions – don’t blame the market or world events.

Trade to trade well and for the love of trading, not to trade often and not for the money. The money will come as a result of trading well.

Don’t be influenced by the opinions of others. Reach your own decisions and follow them.

Never think that taking money from the market is easy and never assume that you know enough.

Have no particular expectation when you place a trade because you know that anything can happen.

Don’t try to guess the future – trading is a game of probabilities.

Use your head and stay calm – don’t get excited or depressed.

Handle trading as a serious intellectual pursuit.

Don’t count how much money you have made or lost while you are in a trade - focus on trading well.

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