Thread by @madan_kumar

#MwMnuggets

It has been a while since i posted something in twitter related to trading.

Many traders made money by random trading (without any plan) in the past 2-3 weeks and it is very easy to think it is because of our ability to know the direction of mkt.

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Sooner or later, we would realize that the market movements(volatility) were so huge intraday that we were lucky to be in-the-money by 50/100 points in minutes.

Even if we have a plan, there is this psychological battle that is going on..

Let me try to elucidate this..

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When we put on a trade, there is a psychological battle that usually kicks in. It’s that classic scene of a devil on
one shoulder and an angel on the other 😃😊

One tells us to hang in there with all our might...

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that things are going to go our way eventually, no matter what the evidence suggests.

The other screams in our ear to preserve our capital, to get out, to take a tiny profit or a tiny loss. Just get out 😊

It’s a powerful sensation especially for the beginning trader.

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This is why a clear trading plan (mechanical entry/exit rules) is extremely critical.

A trading plan in which we can place our faith is like a pair of mufflers, blocking out the sound of that noisy chorus. It is like trying to compose music in a crowded veggie mkt.

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Trading without a game plan is like swimming in the Amazon River with a couple of raw steaks strapped to our waist😃

We might get some good exercise,but the longer we are in the water,the greater our chance of a violent end😊

Use this lockdown to create a trading plan !!

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