Top Five Reasons You Can’t Stick to A Trading Plan.

Reasons you can't stick to a trading plan

Have you ever wondered why you struggle to keep up with your trading strategy or plan(s)? Well, this is the best online resource you need to identify the reasons you can’t stick to a trading plan!

Much emphasis has been given to the importance of sticking to a plan to become a profitable trader. Of course, developing a good trading plan is easy, but sticking to the plan has always been one of the problems often faced by all traders. 

In this article, you will learn more about the reasons you can’t stick to a trading plan. But first, let’s define a trading plan. 

What Is A Trading Plan?

A trading plan is a systematic approach for identifying and tracking securities that consider several variables, including time, risk, and a trader’s objectives. It can be referred to as what should be done, why, when, and how a trader should do it.

A good trading plan always shows you how to find and execute trades, including the conditions under which they will buy and sell securities, meaning it’s a roadmap for trading.

The main benefit of a trading plan is that it helps you remove the emotions of fear and greed from your decision-making. It also allows you to monitor your performance, reflect on outcomes and improve your approach accurately. So, without further ado, let’s dive into why you find sticking to a trading plan complex.

Top 4 Reasons You Can’t Stick to A Trading Plan

  1. Fear and Panic

Panic is probably the most common reason you fail to stick to a trading plan. Of course, not every trade goes picture-perfect as you would hope. However, when the unexpected happens, you likely get unnecessarily nervous, evoking an impulsive act that isn’t part of the plan.

To avoid this, consider all potential scenarios before considering a trade. There should be a plan for every scenario that is likely to happen. With this, nothing comes unexpectedly.

  1. Analysis Paralysis

Analysis paralysis is a stagnation point in decision-making when you become over-involved in researching and evaluating options. It happens when you have so much information at once.

As a trader, you may feel acquiring more knowledge at once will improve your trading. Still, the bitter truth is that overanalyzing or overthinking a situation can cause a forward motion or decision-making to become paralyzed.

If you struggle with analysis paralysis, I suggest you clearly define the information that might make your trading plans awry, pick a few trading tools you are comfortable with and stick to them.

  1. Trader Incompatibility

You may fail to stick to a trading plan because you don’t have a personalized plan that fits your goals, risk tolerances, and personal lifestyle. Your trading plans must be tailored to YOU and YOUR needs, not someone else’s. A good trading plan is based on reality and not hope.

Also, good trading plans are long-term, so if you are trying to make a trading plan based on false assumptions or someone else’s methods, you may not be compatible with it and will have problems following or sticking to it. Therefore, be honest with yourself when making a trading plan you want to stick to, and frequently revise the plans.

  1. Winning or Losing Multiple Trades

A lack of excess confidence after a trade of multiple losses and wins may swerve you from sticking to your trading plans. Likewise, running into a series of losing trades will cause a lack of confidence, making you miss other good trading setups you may encounter.

Conversely, if you have surplus winning trades, you may be overconfident and make trades that don’t consent with your trading plan. A solution to this may be keeping a psychology journal to help keep your emotions in check. In addition, remember that your goals are based on predefined rules, and risks are taken when you deviate from them. 

Final Thoughts On The Reasons You Can’t Stick To A Trading Plan

Trading is just like every other professional career. It takes years of commitment, consistency, and willingness to learn from your mistakes to get good at it. Do any reasons you can’t stick to a trading plan explored in this article appear relatable? Then, check out my next article on how you can stick to your trading plan so you, too, can begin to make consistent profits as other top traders do. 

Have you got questions or thoughts about this article? Do share them in the comment section just below. I can’t wait to hear from you. You may also find any of the related articles outlined below helpful. Do not hesitate to check them out!

Related Articles

This Post Has 7 Comments

  1. pips crypto

    Outstanding post, I conceive blog owners should acquire a lot from this website its really user friendly.

  2. forex prop firm

    I intended to post you the little word just to thank you so much once again for these wonderful suggestions you have contributed on this website. This is so extremely open-handed of people like you to offer without restraint what many people would’ve offered for an electronic book to help make some cash for themselves, certainly considering that you could possibly have tried it if you considered necessary. Those guidelines also served like the great way to fully grasp that the rest have similar zeal similar to my own to find out more and more in regard to this condition. I think there are millions of more pleasant times ahead for individuals who see your blog.

  3. Bom88

    I am glad to be a visitant of this everlasting web blog! , thankyou for this rare information! .

  4. tlover tonet

    When I initially commented I clicked the “Notify me when new comments are added” checkbox and now each time a comment is added I get three e-mails with the same comment. Is there any way you can remove people from that service? Thanks a lot!

  5. Scarlett Kuchar

    Hey there I am so grateful I found your website, I really found you by error, while I was looking on Aol for something else, Nonetheless I am here now and would just like to say cheers for a fantastic post and a all round interesting blog (I also love the theme/design), I don’t have time to browse it all at the minute but I have saved it and also added your RSS feeds, so when I have time I will be back to read a lot more, Please do keep up the superb work.

  6. Olatunji Salisu

    1, 2, and 4 are the most relatable to me. Tgx for sharing this boss.

Leave a Reply

Important Link

Fund Your Deriv Account
Withdraw Funds to Your Local Currency
VIP Trading Signals
Learn To Trade

Contact Us

Follow Us

Disclaimer

Forex, Crypto, Options, and Binary Options have both large potential rewards and large potential risks. Therefore, before investing or trading any of the assets, ensure you are aware of and willing to accept the accompanying risks. Do not trade money you cannot afford to lose.

All Rights Reserved. None of the content of this website can be published elsewhere by any means without the prior consent of the owner(s). Please, check our terms & conditions and privacy policy before continuing to use this website.

This website and its owner(s) are not in any way liable for any incurred loss, whether caused by the information provided on this website or otherwise. The use of this website, including the content and information provided, is the user’s sole liability.