“Plan your trade and trade your plan.”
“It was the change in my own attitude toward the game that was of supreme importance to me. It taught me, little by little, the essential difference between betting on fluctuations and anticipating inevitable advances and declines, between gambling and speculating.”
In the popular imagination, trade identification is more important than risk control. Yet, most successful traders argue the opposite. Before you start to trade you should first identify your trading edge, because knowing where your comparative advantage is helps determine the types of trades you enter. You should also decide how you will make your trading decisions. Are you a ...