Top 10 Reasons You Might Be Failing to Follow Your Trading Plan

In order to succeed in trading, most professional traders will encourage you to use a trading plan. Check out how to create a Trading plan article on our free day trading tips page.

1. You often get bored of watching the charts and you are easily distracted. The IM is blinking and the baby is crying
2. You have not had a good night's rest and you are exhausted. You are too exhausted to have a clear mind and make good trading decisions.
3. You have had a few good trades; now the overconfidence has taken a hold of you
4. You make excuses for your losses and this leads to changes in your trade plan after the trade has gone into the red
5. You stop believing in your trading plan and lose confidence in it prematurely. You have not tested the plan for a long enough.
6. You have an impulsive personality and are easily frustrated in stressful situations
7. Certain situation like pressure, stress, increased personal expenses makes you focus on your P&L instead of your trading plan. You start using your ego to trade instead of your plan.
8. Your trading lots that are excessive for your account size, this creates large P/L swings and your emotions take over
9. Hello, you don't even have a trading plan yet.
10. You are not trading the right market, time frame or indicator for your personality and risk tolerance.