Beginning traders are told time and time again to keep their emotions out of a trade. It is nerve racking to sit in front of a screen and watch Japanese candles change in color, width, and height as you second guess your trade. It makes no sense torturing myself like that. It tells me that I am questioning my homework or lack thereof and if that is the case, I need to work a little harder on analyzing all available data before I pull the trigger on a trade.
Making the above observation, I see why it is important to keep your trading plan and trade journal handy. Your plan keeps you grounded and disciplined. You put time and thought into writing it. You may as well follow it, knowing that as you amass more experience and knowledge that eventually the plan will be modified. In the meantime, however, like any good athlete, you don’t want to make any changes in the game plan while in the heat of battle. In the heat of battle is not the time to practice.
When it comes to time constraints, for those of us who are funding our trading desks ourselves, getting out of our comfort zones and trading in sessions that are not in our time zones is a “blessing.” As I shared in my last blog post, I dipped my toes in the Asian session by trading the dollar-yen for the first time. My business trade during the day influences when I can do my day trade in binary options. Taking advantage of the 24/5 nature of the foreign exchange markets means there is always an opportunity to make a return.