An extract of an article from Traders World Magazine issue #40
Trading with a Plan
By Larry Pesavento
You would not send a son or daughter off to college without them having a curriculum for study. But most speculators (investors) give the application of sound trading or investing strategies very little thought. They either listen to their broker, neighbor, colleagues and friends for tips on the market. Or they listen to one of the financial channels or trade publications such as Wall Street Journal, Barrons or Investors Business Daily, totally unaware that the news follows the prices. By the time the good news hits the airwaves prices have already been moving in that direction (bullish or bearish).
A sound trading plan can take you out of the news loop. There are three elements in a trading plan: