I followed the dictum for years – or at least I followed it as well as I could. “Plan the trade, trade the plan“. But like everyone else I had trouble with the second part and often chastised myself. That was until neuroscience proved that within uncertainty – like when our brains see markets – our unconscious compels us to make a judgment call.
You might call it semantics but the advice really should be “Plan the trade, trade the judgment call” – and then the plan should be all about how to make the best judgment calls.
Judgment calls – as opposed to baseball hits or the solution to an algebra problem – are all you are ever looking to do in trading. It is so NOT an exact science. But you can get better at better at making good judgment calls.
If you add a series of strategies that help you perceive the markets more clearly, your judgment gets better. There are all kinds of things neuroscience is showing – physical energy, emotional awareness, value of unconscious and non-deliberative thought… just to name a few to begin to work with.
Rethinking the oft-repeated advise in terms of neuroscience – in terms of what we know about that brain NOW – makes for better trading.