Why oh why can't I stick to my plan ?

Quote from cicsman:

I'm sure this is a pretty common thread with beginners.

My problem is that I plan out my trades but sometimes don't follow the plan with the inevitable result i.e big losses.

An example: I spotted a stock (using candlesticks) that was moving up nicely and approaching a previous gap. I determined that if it filled the gap I would buy into it. Yesterday the stock started moving up and I ignored the plan and took the plunge early, before it filled the gap. The result, it immediately turned around and plummeted resulting in a big loss.

So the $64k question, are there any tried and tested methods which I can use to force myself to stick to my plan ?. Or am I screwed ?. By the way I've read Mark Douglas but I guess his advice didn't work too well for me.

Thanks in advance.
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I would ask you in return a couple of questions. What is your goal in trading - is it in fact money, excitement, to gamble or??

You indicate you have a plan - Jango has given some good adive - you need ALL parts to your plan; entry, loss exit, reentry point, profit exit and position size. This should be written and practiced. Only deviating from this plan will you most likely learn to stick to it.

If you have a regular job, consider how you approach that - do you change how you perform your job in the hopes a quick profit or for the excitement of it? Probably have a plan and follow it daily.

Douglas is a good book - but I might also recommend Van K Tharp.

If you cannot pull the trigger on a mental stop - get in the habit of placing it in the market immediately after you enter.

Practice.

Make 'em pretty, Chris
 
Quote from rhymeswithorang:

I don't see how one or two chances to make money each day raise the odds of screwing it up. It all depends on teh way you trade, if i can find five good set-ups a week, I'd be happy. But i have a longer time frame.
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My assumption is that the guy asking the question is a daytrader - meaning he's gaming stocks actively all day long. It is possible to get in and out of the market actively without churning - assuming you have a strategy. I trade purely off of the pivot and opening ranges - probably 8-12 opportunities to make money every day.
 
cicsman,

The posts you have made indicate that you have a misconception about what a plan is.

No one else seems to be picking this up or, they too, are operating in the manner you choose.

It may be a good idea for you to review 15 or so complete excellent plans of others to get a handle on what you may consider to design and build several plans for trial purposes.

Do not consider any plans less than 100 pages (typed and illustrated) for starters because the abreviated ones are incomplete. Most plans have 10 or more subsections.
 
Quote from Grob109:

cicsman,

The posts you have made indicate that you have a misconception about what a plan is.

No one else seems to be picking this up or, they too, are operating in the manner you choose.

It may be a good idea for you to review 15 or so complete excellent plans of others to get a handle on what you may consider to design and build several plans for trial purposes.

Do not consider any plans less than 100 pages (typed and illustrated) for starters because the abreviated ones are incomplete. Most plans have 10 or more subsections.
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Stop trying to lead the original poster astray. Trading is hard enough without losing traders trying to psych-out newbies. Read Grob109's past posts and see if you can make ANY sense of ANYTHING he says. I couldn't.
 
Quote from cicsman:

An example: I spotted a stock (using candlesticks) that was moving up nicely and approaching a previous gap. I determined that if it filled the gap I would buy into it. Yesterday the stock started moving up and I ignored the plan and took the plunge early, before it filled the gap. The result, it immediately turned around and plummeted resulting in a big loss.
More...

Why did you enter early?
 
Quote from cicsman:

I'm sure this is a pretty common thread with beginners.

My problem is that I plan out my trades but sometimes don't follow the plan with the inevitable result i.e big losses.
Thanks in advance.
More...

You couldnt switch to trading the ES could you.
We like all the volume that we can possibly attract.
Cheers
 
Quote from cicsman:

I'm sure this is a pretty common thread with beginners.

My problem is that I plan out my trades but sometimes don't follow the plan with the inevitable result i.e big losses.

An example: I spotted a stock (using candlesticks) that was moving up nicely and approaching a previous gap. I determined that if it filled the gap I would buy into it. Yesterday the stock started moving up and I ignored the plan and took the plunge early, before it filled the gap. The result, it immediately turned around and plummeted resulting in a big loss.

So the $64k question, are there any tried and tested methods which I can use to force myself to stick to my plan ?. Or am I screwed ?. By the way I've read Mark Douglas but I guess his advice didn't work too well for me.

Thanks in advance.
More...
What you describe does not sound like much of a trading plan. It sounds more like a tactic. A complete trading plan is far more comprehensive. Generally speaking, the confidence you need to stick to a comprehensive trading plan comes from systematically testing it, amending it, testing it again and then applying it. Based on your post, I do not get the impression that you have engaged in this sort of intensive preparation. If you have indeed done so and still cannot seem to follow your plan, then either your method's test and/or trade results are not particularly encouraging or your trading psychology truly does require addressing. However, until you have covered this ground and reached this point, the issue is moot.

Therefore, I agree with Grob that you probably do not have a legitimate trading plan in place, based on the limited information you provided in your post. However, I think he has gone fairly well over the top with his reference to 100-page typed and illustrated plans. (You do have to admire his sense of humor, though.)
 
Just to clear a few things up.

I am swing trading, although as I'm not working at the moment I have had lots of opportunity to watch the market during the day. I think this has led to me jumping into things at the wrong time. I'm trying now to just put my trades on (with stops) and then switch the pc off and go and do something else for the day.

I am not and have never been a gambler by nature. I've visited Vegas a couple of times and can honestly say that I have never spent a single dime on any machines, games etc. But from re-reading a couple of posts I'm beginning to think that what I have been doing io far seems more akin to gambling than anything else.

As to why I put on a trade early ?. I wish I could answer that. It seemed the right thing to do at the time, despite the fact that it was against my plan. And that's the problem !.
 
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