Keeping the Trade Plan Updated

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Staying aware of time and it`s passing is an important skill for traders to develop.  We know where the market is now, so the question is really: Where will the market price be in the future?  As soon as we think of the future, it becomes a question of time; When will it be there? If we consider these questions as our formulate each trade strategy, we`ll go a long way toward incorporating time into our overall trade planning.  More important, we`ll gain an intuitive appreciation of the importance of time in trading, and we`ll find ourselves asking when as often as why or where. So it is important to Keeping the Trade Plan Updated.

Time`s passing also brings us nearer to scheduled news or data events.  The pricing in of market expectations for major events occurs in the hours and days ahead of the event or data release.  As the release time draws closer, anticipative speculation generally declines, and price movements can become more erratic as traders take to the sidelines ahead of the release.  Prices may chop around more, but ultimately not go anywhere. All these market reactions are as much the result of time as they are of the event itself.

Also Study,

Developing a Trading Plan

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