2012 is a do or die year for my trading. I must do everything I can to insure success.
1. I shall work hard to become a consistently profitable trader. My trade method has a positive expectancy. The key is to control my emotions, especially the fear of losing, which causes not to take a proper entry, exit out early on pull backs.
2. My gross profit target is $60K. It equals to an average of $5K per month, $250 per work day. This is not a high target. The key to reach it is manage my Risk and Reward properly. I can have a profitable result if I can achieve 1:1.5 RR at least, ideally 1:2 RR or better. Risk and reward assessment should be employed in futures, stock and option trade.
3. Deduce my time spent in front of trading screens. Walk away before a news release and lunch time. It's OK to miss some trades during such time. Do not trade in the last 30 minutes of closing time. Use the down time to work on other tasks, such as read a blog, pay bills, file paper work, ...
4. I shall review my trading plan once a month at least. Update it to reflect my progress or new knowledge.
5. I must read four trading books in addition to attending webinars, reading related articles and blogs.
I failed to control risk on the 2nd half of 2011 during the high volatile moving period. I lost all of my profit from the first half of the year and lost $17k. I took 40 days off from Oct to Nov which probably helped to avoid further losses. A lot of pros lost money in 2011. This is a lessons to be remembered. Stay out of swing trade during such time is a key to preserve my capital.
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