Summary about Mistake in Trading "lack of trading plan"

Planning plays a key role in the success or failure of any endeavor. The more prepared an individual is when starting out the greater his likelihood of long-term success. Unforeseen problems that must be dealt with as they occur are inevitable and can cause even the best laid plans to unravel. As a result, true success in any enterprise results from laying out a well thought out plan, following the plan, adapting to unforeseen problems, and always keeping one's head above water. Futures trading is no exception.

Your trading plan will serve as your roadmap to help you through the twists and turns that the markets will throw at you. It should also serve as a constant frame of reference, particularly when things are not going well. When you encounter difficult times in trading, it is not unlike flying a plane in bad weather at night. Under such circumstances, your inner ear will lie to you and tell you that your wings are level even when they are not. In order to keep your wings level you must rely upon and trust your instruments completely. Likewise, when trading during a bad stretch your inner voice will lie to you and will tell you to do things that you normally would not, and that deep down you know you should not. But because you are losing money at the time you may be tempted to say "why not?" In order to keep your head level in such circumstances you must rely upon and trust your trading plan completely. And given that you will at times have to rely so implicitly upon your trading plan, it will hopefully be clear to you why forming a comprehensive trading plan is your first step toward trading success.

Lack of Trading Plan
Planning plays a key role in the success or failure of any endeavor

Using too much Leverage
Determining the proper capital requirements for trading is a difficult task

Failure to control Risk
Refusing to employ effective risk control measures can ensure your long-term failure

Lack of Discipline
A lack of discipline can destroy even the most talented and best prepared trader

Useful Advices to Beginning Trader
You can control your success or failure

All about Stocks
Encyclopedia about Stocks. That you should know about Stocks before starting

Forex Glossary
All terms about Forex market