Elliott Wave Options: Follow Your Trading Plan!

Trading takes a totally different mindset compared to investing. Investing is based on several factors. That includes looking at a company’s underlying earnings and other fundamentals. And it may include other metrics such as the quality of a CEO or new upcoming product launch.

When it comes to trading, metrics like that take a backseat. What matters most? Price action. A stock trending up may continue to trend higher. A stock about to change course can offer a big trading opportunity.

That’s why traders should look to develop a plan. The plan should be based on a few factors.

The most important is to stick with a comfortable trading strategy. Traders should be willing to experiment with different strategies, but stick with ones that they find works best for them.

Some traders may focus on directional bets, while others look for market spread trades. And some may use metrics like the Elliott Wave. Yet, others may find they prefer using trends like relative strength.

Next, there’s the importance of following through on a trading plan.

Sticking with a plan consistently, and not changing around variables, should lead to consistent results.

When traders have a specific trading plan and follow it through, they should be able to capture the moves they’re looking for. That allows for consistent profits over time.

To view the full video on how this strategy can play out, click here.