By: Tom Gentile
on April 14th, 2022
Read the fourth part to the series here.
Skill #5 Follow Through: Following Through with your Trading Plan
A paramount key to your overall success as a trader is being able to and being committed to follow through.
You can have the best trading plan in the world, the best strategy in the world, and the best broker in the world, but if you don’t consistently follow your system to the letter, all of it will mean nothing.
What I’ve Seen Traders Do
I have watched people take nine losing trades in a row, only to see their tenth trade become their largest winner ever.
I have seen people take a profitable system that signaled a trade that is a loser, seen them double down. Watch it pop up, take it off and post a small profit. The system should have posted a loss, but the genius made a profit out of it.
Short-term gain, but long-term loss to the trader. Learning to cheat one’s system will ultimately kill a traders account first and kill their spirit second.
Trader Affirmations to Keep them on Track
To keep my trading on track, here are some affirmations that I use on a daily basis before the day begins.
- I am a disciplined trader
- I only trade systems that have proven profitable in the past
- I use Options only if the give me a higher reward and lower risk on a trade
- I follow a specific set of rules and I do not deviate from them
- I map out my entire trade plan, from entry to exit, from my profit stop to stop loss
- I take a loss if my system tells me to take a loss
- I take a profit if my system tells me to take a profit
- If I make a mistake, I will correct the mistake before trading again
- I learn from both my profits and losses, and this makes me a better trader
- I am becoming a better trader every day
KEY TIP: Begin Each Trading Day
I do this every day and I encourage each of you start your day with trading affirmations
You can use the list provided. You can add to it as you like. And ‘follow through’ with these affirmations each day.
App: Toms Option Tools
Market Insight articles may show images of lists of stocks meeting a variety of options parameters like Unusual Call and or Put activity or Expensive IV found on my app Toms Option Tools.
Other times I will have other charts may work to amplify my educational points.
Those options data lists, however, can be found on my app Tom’s Option Tools. Use your device to search up and download this app and get free access to the Morning Reports section of the app.
Other parts of the app are available at a premium subscription rate, but the Morning Reports Lists are yours free.
Stock and options trading has large potential rewards, but also large potential risk.
You must be aware of the risks and be willing to accept them in order to invest in the stock and options market. Do not trade with money you cannot afford to lose.
This is neither an offer to buy/sell/ or recommend a particular stock or option.
Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been actually executed, the results may have under or overcompensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with hindsight.
No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.
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