Create a plan, follow it, then review it afterwards.
That is basically what I do. But what happens when the plan execution creates a trade that exceeds expectations and you need to adjust? How does one do this objectively while keeping emotions in check?
Won’t lie to you, no easy answer when you are in the middle of a trade. But certainly the “review it” part is a worthwhile task to perform. I find myself in that very spot right now on a GMCR (Green Mountain Coffee Roasters) short position that I have on. I had determined that I wanted to swing the trade but the tremendous down move has caused me to institute other trading rules that I follow (you know, don’t be a pig rule to name one).
How do you keep greed in check? Comments welcome.