The Importance of Discipline and Confidence in Trading

This week (2010-08-02 to 2010-08-06) is marked by many trading mistakes. There are a few lessons to learn from the trading. Even though the result showed net gain for the week, the major win was an over flow from last week's trade.



To summarize, here are some pointers to remember during trading:

• There were still too many times where I was looking at the 5-minute chart after placing a Swing Trade. This has to be stopped.
• Need to ensure entry point is correct for any trade. If missed the point, wait for it to come back or forgo the trade.
• Differentiate between Momentum Scalping vs Swing Trade.
• Trade along MAJOR TREND.
• Ensure CLEAR & GOOD Setup before entering trade. DO NOT Take HALF CHANCES.
• DO NOT OVER TRADE!!!
• WATCH YOUR GOAL AND STOP OR GO SLOW WHEN REACH YOUR GOAL!

The above lists summarizes the mistakes that was made during the week. Many of them were made within one single trade.