Fire and forget

A very important part of trading is not to sit glued to the screen while you are in position.  It's a common mistake the traders make especially in the beginning of their career.  It's only natural to watch the market if you have an open position, but it is absolutely the wrong thing to do. Let me explain why.

At any given moment there can be a hundred reasons to get out of the position as well as to stay in one.  By watching the market tick by tick, the trader subconsciously tries to analyze the market's moves and to "interpret them".  At a certain moment somewhere deep inside a decision is made (e.g. to get out of the position because it does not "feel right"). After a while the trader is absolutely "sure", that the "feeling" is right because the brain selectively interprets what it sees with a bias towards supporting the "feeling". A decision is made to exit the position despite the fact that his system tells him that he should stay put! And just when the position is closed, the market takes off in the direction that was initially chosen... What just happened there?  A trader has convinced himself to exit from a perfectly good position by watching the market tick by tick.  I have seen this happen countless times to colleagues (and was guilty of doing so myself in the beginning)

There is a very simple trick to avoid this whole mess! Open your position, place your stop, and go do something else! The trader's doubts about whether the decision to open a position was the right one (psychologists define this feeling by the term "buyer's remorse") oftentimes cause him to close his position prematurely. Those doubts feed on the trader's staying glued to the screen after he entered the market.  Don't feed your doubts; do not hypnotize the screen :)