| More Basic Trading Plan Mistakes. | | | | After completing some successful trade's some |
| 1. Letting a profit turn into a loss. | | | | people lose sight of why they are trading successfully |
| Take your profits when you're trading plan says you | | | | and begin to alter the rules. This is often when you |
| should. Always remember it is very hard to lose | | | | will incur a great loss. Remember, it is the trading plan |
| money if you are taking a profit. Do not beat | | | | that made you successful do not abandon it only |
| yourself up if you exit a trade and it goes up a lot | | | | ever refine it. |
| further than you thought. You have a plan for a | | | | 5. Lack of discipline. |
| reason to protect your money and remove the | | | | I have saved the hardest part for last. Follow your |
| emotion from the Trade. There is no point in having a | | | | rules are trading plan is of absolutely no use at all if |
| Trading Plan if you do not adhere to it. Do not hold | | | | you do not follow it. |
| the stock after your profit has been realized. Always | | | | This is probably the hardest part of trading to |
| remember a trend can reverse at any time. It is very | | | | constantly do yet it is the most important part |
| easy to get caught out. | | | | without a plan you may well be destined to failure. |
| 2. Not having clearly defined objectives. | | | | A trading plan removes I hope, I wish, I thought |
| Before you commence to trade has a clearly defined | | | | from your trading. It replaces it with a cleaner set of |
| object you of what you want to get it of Share | | | | guidelines that tell you why you went into the trade |
| Trading. Set goals the achievable and realistic. Part of | | | | in the first place. It also tells you when you're going |
| your plan should have what you want to see in the | | | | to get out of the trade and lets you know how |
| short, medium and long term. | | | | much your going to win or lose from the trade. |
| 3. Do not try to solve financial woes by trading. | | | | All because you have a plan, a plan removes the |
| Share trading is not a get rich quick scheme. A | | | | emotion from the transaction which is a good thing. |
| gambling mentality will result in greater losses than | | | | If you trade with the mentality that it is a business |
| gains. Share trading should be approached with a | | | | nothing more and nothing less and you stick to your |
| systematic plan and a clear set of goals in place. | | | | clear well revised plan your chance of becoming a |
| 4. Knowing it all. | | | | successful Share Trader will improve greatly. |