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Old 07-30-2008, 12:51 PM
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David Waring David Waring is offline
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Location: Miami, FL
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Hi Uahmed,

This is a good question and I think a problem that many traders who are new to the market have.

My suggestion is to step away from looking at charts and following the market for a couple of days, clear your head, and then when you come back focus on putting together a plan for how you plan to place trades. Often times I find that people get confused because while they are trying to soak up all the information from the books, websites etc that offering education on the markets, they are not doing so in any sort of structured manner.

While this is better than not doing anything at all, information without structure is pretty much useless. The structure that in my opinion a trader should focus on building is a business plan for their trading that outlines what they hope to gain from trading, the type of trading that best fits their unique situation, criteria for entering a trade, criteria for managing a trade, and criteria for exiting a trade. For more information on this see the video below:

The 20 Components of a Successful Trading Plan

Hope that helps. If there are any other questions or comments on this one please feel free to post.

Best Regards,
Dave
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Disclaimer: Trading is risky and can result in substantial financial loss. As always my posts are simply one traders opinion and should not be taken as trading advice. I am not a financial adviser so everyone please do their own analysis and take responsibility for their own trades.
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