Many take this matter less seriously and as a result, it results in unstable emotions, chaotic and inconsistent systems as a trader.
It is very important to know what to do BEFORE, DURING & AFTER the trade to test the system, to train emotions and so on.
Before Trade:
Once you have identified 1 good setup and confluence with your system, among the steps that need to be taken are:
Calculate and place the appropriate Stop Loss - Never place the Stop Loss at will! And do not place Stop Loss according to the emotions of fear or greed.
Willing to accept Loss - Before entering a trade it is very important to be mentally prepared to receive a loss. If you can accept the appropriate loss, enter the trade. If otherwise, stay away from that trade.
Trade taken takes time - Let the price move, do not stick to the screen to prevent you from changing Stop Loss or entering another trade without a plan. This is called 'itchy hands'.
During Trade:
During trade is the time when most people fail. Many face the screen of a smartphone or laptop to see the open position. This situation is not good and harmful.
Check your trade only once or twice to make it a better routine. If the price has moved to the TP level, then switch SL to make it Breakeven or Trailing Stop.
Avoid over-thinking, and never 'itch your hands'.
After Trade:
The first thing to do after a trade, no matter the profit or loss, take time to calm down. Forget the market for a moment. Then take a trading journal and write down what has happened, what needs to be improved.
If profit, where is the key to profit. If loss, where is the mistake.
Be a very, very, very disciplined trader, don't just hit. You don't want to gamble, do you?
