Plan Trade to Reduce Stress

We hear different views on market trend every day. Some are for short duration and some are longer. They are the reasons for traders' actions. In their absence, the market will be dead.

Many traders find it very stressful to manage the above. Possible actions are:

1. Do nothing and just follow own instinct. This is common but stressful.
2. Switch trade position upon receiving news threatening the positions. This is very stressful.
3. Close position and pull out of market. No stress but no further gain either.
4. Work out a plan with profit stop, trailing stop, cut loss stop, monitor position closely and act decisively according to plan. Add protective instrument, e.g. options (for US markets), warrant (in other markets) at crucial time, e.g. over week-end, holiday and pending announcement of major events where necessary.

Market only listens to events and the mood at the material time. All market projections may be right or wrong and only time can tell.