Quote from ttrader:
Iagine You had the perfect plan. After executing some trades You have success. But then You suddenly doubt it will work any longer. So what Do You do ?
ttrader
If you now doubt it will work, it's because it has been breakng down recently? Maybe your concept of the plan was flawed all along.
To be successful, you must do ONLY 2 things:
A. Take risks that have a favorable probability of outcome.
B. Exercise stop discipline.
For (A), you'll need some mentoring or experience so that you know why you should be betting on "xyz setup". (Are the setups you're using now have a high probability of working out, or 50-50. Do you KNOW, and if so, how do you know?) For (B), you must force yourself to cut off losers. Too many mistakes here and you're a gonner.
Example: Let's say, your trigger is "3-5 upside cross" and your stop is "2 tics below the last bar low", or "2 ticks below the last swing low", or "2 points", or "2%"... whatever you want. Over time you will learn how to define setups which are worth risking capital upon. And NOBODY is good enough to get away with not using stops.
Accept that no matter how disciplined you are, it's still possible to wipe out. (I like to think that only really bad luck would get me. If I'm going down, I want it to be like being nibbled to death by ducks.) So, be diligent about understanding the setups you take.
That's it. Pick your setups, and always use a stop.

