Plan every trade with if-then statements to erase second-guessing

Medium - Requires some preparation Recommended

Close your eyes and picture the first ten minutes of the trading day: alarms blaring, scanners screaming, data flying. It’s easy to freeze or chase in that heat. Now imagine a different scene—a calm workspace where you hold a simple notecard reading “If price breaks VWAP, then short 500 shares; stop if it retraces above VWAP.” No alarms, no panic, just a practiced script guiding your finger to the Hotkey.

This if-then framework taps into your brain’s craving for clarity. Cognitive science calls it implementation intention: the mind prioritizes concrete action steps over vague goals. When the market bell rings, your bullet-proof instructions surge into awareness, bypassing the usual “should I?” debate. You’re not hoping to remember them—you’ve rehearsed them.

I still recall the day my screen lit up with ARNA gap-down news. I’d written “If ARNA < VWAP by 0.10, short 400; profit at next support.” At 9:32 a.m., it hit 0.12 below, and my finger found the Hotkey without a second thought. Gone were the squeaky doubts; only motion remained.

Research shows this reduces mental load and impulsive errors by up to 50%. You trade with intention, not emotion. You’re not superhuman—you’re simply following a battle plan you created.

Every morning, draft two if-then statements for each potential trade: clear entry triggers and matching exit rules. Limit yourself to two stocks so you don’t overwhelm your mind. Then read them aloud while your pre-market scan runs—this spoken rehearsal turns plans into automatic responses the moment the bell rings. Give it a try tomorrow.

What You'll Achieve

You’ll quiet pre-open anxiety and eliminate second-guessing, translating to faster execution and fewer impulsive mistakes. Externally, you’ll hit your risk and profit targets more reliably.

Script your entry and exit scenarios

1

Draft morning if-then triggers

Before the bell, write scenarios for each watchlist stock: “If it breaks VWAP in the first 10 minutes, then I short 500 shares.” This removes hesitation at the open.

2

Include stop and profit targets

Append each entry with clear exits: “Stop if it closes above VWAP; take profit at the next resistance.” No loose ends.

3

Limit to two stocks

Keep it simple—two clear scenarios, not ten. Your mind tracks fewer rules more reliably than dozens at once.

4

Read them aloud pre-open

Say each if-then aloud while scanning. Auditory rehearsal cements your plan under pressure.

Reflection Questions

  • What’s one anxious moment at the open you’d eliminate with a scripted plan?
  • Which two stocks are you most comfortable writing if-then rules for today?
  • How might speaking your plan out loud transform your next entry?

Personalization Tips

  • In meetings, you script “If the client asks pricing, then I share only tier-one options.”
  • When studying, you note “If I’m distracted after 25 minutes, then I will stand and stretch.”
  • In family time, you plan “If dinner runs late, then we’ll postpone evening TV until the weekend.”
How to Day Trade for a Living: A Beginner's Guide to Trading Tools and Tactics, Money Management, Discipline and Trading Psychology
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How to Day Trade for a Living: A Beginner's Guide to Trading Tools and Tactics, Money Management, Discipline and Trading Psychology

Andrew Aziz 2016
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