Yes, many traders may lose money because they act on impulse, crowd behavior, or incomplete strategies without clearly answering essential questions like entry price, exit plan, risk tolerance & rationale.
Thinking ahead before each trade—defining entry points, profit targets, stop losses & reasons for the trade—builds discipline and clarity, which likely improves the probability of success by avoiding emotional decisions.
While thinking ahead is broadly applicable and beneficial for all investing approaches, the level of detail and timeframe may differ; long-term buy & hold investors may focus more on fundamentals & macro trends, whereas short-term traders must frequently reassess technical triggers & market conditions.
In summary, consciously asking critical questions before investing or trading, regardless of the asset or strategy, helps manage risk, avoid herd mentality, and make more informed decisions that align with personal objectives and market behavior.
@Abaaa @koolgal
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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