Many a trader struggle with their trading. They will sometimes blame it on a learning curve or the type of market that exists at the time. These traders will ask me for advice and suggestions to speed up their learning curve.

The questions usually have several common areas.

When do I buy a stock?

How large of a stop loss should I use?

When do I get out of a stock?

What stocks should I be trading?

The questions are valid. The trader is really asking for a trading plan. A trading plan answers all of those questions.

A trading plan specifies –

Time Frame

Studies to use

Set up before entry

Trigger as to exact point to buy

Stop loss to use

Exit conditions

Filters as to what stocks to trade.

Most of these traders are trying to trade on their emotions. They try to get a feeling as to what the market makers or specialist may be trying to do. The will watch the TV to try to get a feeling of what the news is and trade how they feel people may react.

Trading on emotions is difficult. I do not know any successful long term traders that trade on emotions. Try writing, testing and using a trading plan. You will have a good feeling about your trading.