‘If then’ statements are great to include in your trading plans if you haven’t done so already. One way I use these statements is prepare myself for all types of scenarios and possibilities to prepare for the potential future.
We don’t really know if the market will run up, drop down or just chop sideways. And when we’re trading we should be prepared for all three circumstances. The more prepared we are, the more ready we’ll be for those unexpected events.
The idea of ‘if then’ statements is really simple.
Here’s an example.
IF the market continues up, THEN I’ll add onto my position.
IF the market continues up by 5 points, THEN I’ll exit my trade.
Have a variety of ‘if then’ statements so you know what you’ll do when the market moves a certain direction. You can keep it simple or you can add to it further by the way you might adjust a position.
IF you do the work, THEN you’ll be able to protect your trading capital.