You get into the trade and after which you let the trade runs its course according to what you have planned.

So you realize this is something that is very important. You do not try to let your emotions decide what you do in the midst of the trade and this is also something that you shared earlier on that you mentioned as you see the trade moving after you get into a trade, you feel anxious. You are not sure whether is going to go up and hit your profit target or it is going to touch your stop-loss or you’re gonna get out. So you feel anxious.

But if you think about it objectively, if you have already established where your profit target is, if you have established where your stop-loss is, what is it that you need to feel about?

There’s nothing. You just let the market run its course.

So that’s the part where having a very well-defined process enables you to try to eliminate a bit more of your emotions and leave it aside so you have control over it.

So once it touches the profit taking, great, is a profitable trade, move on, that trade is over.

The tendency is that a lot of us like to let the past trade, the last trade affect what we do in the next trade and that is totally wrong because every trade is on its own, it’s not related to the previous trade.

But emotionally as part of a human, we always relate the last trade with the next trade.

So either hit the profit or hit the stop loss, get out.

After wish what do you?

Actually, the next step of the process is make sure you keep track and record down all the trades specifics of this particular trade that you have exceeded.

Interested to receive mentorship opportunities like this with Philip?

Find out more at traderwave.com/innercircle

Philip Teo

Founder & CEO at Traderwave Pte Ltd
Philip Teo is an entrepreneur, speaker and trading coach who specialises in the field of Technical Analysis of the financial markets. He is currently the Founder and CEO of Traderwave Pte Ltd, a financial technology company that offers a web charting application to global traders. He has conducted many trading seminars and appeared on national television before. He is also currently an official speaker and trainer with SGX Academy. Learn more about him at his Google+ Profile, LinkedIn Profile and Facebook Profile

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