If you look back at my previous posts you will understand how important trading plans and risk management are!
I really have not had the courage to hold firm to my convictions since seeing the bullish reversal candle on the 5th of February as my mind has switched between holding my positions to selling out on several occasions for no reason to do with the stock markets but only because of changes in my emotions. The one constant was my trading plan (entry and exit points)and my predefined risk level (position size)which gave me total piece of mind and resulted in me not doing any thing irrational.
The markets are going to do what ever they are going to do. We can not control this. What we can control though are: when we get involved, what instruments we chose to get involved with, and how much we want to risk when we do get involved with an instrument. To inform these decisions we need a system. Further in order to be profitable we not only need a system but one that has a positive expectancy.
My system of choice is CANSLIM. What's yours?