One of the most important parts of setting up a trade is paying your
price for the trade. There are times where the price is right there for
the taking right away. Other times, you have to be patient and the price
shows up later. But sometimes, the price never shows up. The reaction
to the third case will be a great indicator of a trader/investor's level
of discipline on trade entry.
Disciplined traders will
look at a trade price as not to their liking and walk away ready to find
the next trade. They know that the market has a plethora of trade
opportunities. Those with faith who continue to improve their learning and execution
abilities find moving on from not being able to enter a trade very easy,
knowing the next one is right around the corner.
The undisciplined trader will compromise and sacrifice in
order to make the trade. They feel a need to make the trade work, even
if it means less profit. Those with fear of the market, react more often and do not participate
in the market's revenue generating process as well. Generally, ego
driven trading will drive the trader investor to make the trade anyway.
Remember that sticking to the calculated entry price is more of a reflection of the trader and their plan than the actual success probability of the trade at that entry price. Letting go of trades that don't go your way should be a regular occurrence. That is ok. Continue to implement your plan. Continue to search for improvements and test those adjustments to verify that they improve your plan.
Faith in the market and one's abilities to learn as they trade are important factors that drive these decisions.
PS - Today's market should provide plenty of opportunity regardless of which side you trade. Happy trading!
