You’re sitting at your trading terminal.

You know perfectly well what happened before by looking at the chart on the left. The order book to the right shows you what's happening now.

But what’s coming next? You don’t know, and no one else does. It’s just you and the empty order entry panel, waiting for you to make a move.

In that moment, fear, uncertainty, greed—all of these arise in the hearts of traders. Should you buy or sell, and with what position size?

Most traders fail precisely because of these feelings. You need to remain indifferent. Only with a pre-defined trading plan can you achieve this.

With a plan, you already know the risk you’re willing to take on a trade, which helps you calculate your position size. You’ve already outlined the conditions for opening a position and in which direction.

With a plan and risk management, there’s no need to worry about what will happen next because you’ve set a risk that won’t harm your capital. You won’t hesitate to buy or sell because you’ve already decided in advance.

All that’s left is to wait for the trigger to your plan and execute another trade in a long series.