Why “Planning The Trade & Trading The Plan” Pays Off

Trading Discipline

It’s easy to be a disciplined trader when trades are going your way. But long-term winners and losers are determined by the ability to “plan your trade and trade your plan.”

Continue reading to see how “sticking to the plan” enabled us to maximize profits in our recent TSLA swing trade, despite the stock gapping sharply lower while long.

On November 12, we shared a new blog post about our recent swing trade entry in Tesla (TSLA).

In that TSLA blog post, we walked through the charts to explain the rationale behind our buy entry.

At that time, our Tesla trade was already showing an unrealized gain of +7%.

We planned to hold the stock for a projected swing trade gain of 10-20%.

However, as is often the case in this business, the trade did not work out exactly as anticipated.

After moving only a few more percent higher, TSLA suddenly gapped sharply lower on increasing volume.

Nevertheless, we still managed to profit with an average gain of +7% on the winning trade.

Keep reading to discover how “planning the trade and trading the plan” enabled us to do so.

Then, watch your trading profits skyrocket when you start doing the same!

Planning The Trade

It is crucial to always have an objective and clearly defined plan before entering ANY new stock trade.

Having a clear trading plan before buying any stock or ETF is a major element of trading success and helps remove emotion from your decisions when the battle between bulls and bears inevitably heats up.

In the November 5 issue of The Wagner Daily newsletter, we shared exact details of our Tesla trading plan in advance of the entry.

The following technical commentary and annotated chart was listed for subscribers in that day’s report:

“There is one new official setup for Tuesday in TSLA. We like the big volume gap up, followed by the light volume pullback that stopped short of touching the 10-day MA.

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Disclaimer: Past results are not necessarily indicative of future results. There is a high degree of risk for substantial losses in trading securities. All data and material on this website and/or ...

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