We have an order in place according to plan. Market makes a big sudden move, then we chicken out and pull out the order. Our reasoning is that there will be many more trades down the road when there is less heat. Is this the correct move?
I think it is better to stick to your plan if your trade is according to your plan. If you don’t take the trade, how would you know if your plan works or not? If you pull out your order because of something else that is not in your plan, that means you have not accepted the risk in your plan. Think out the worst case scenario first. If you can accept them, then you will be able to trade your plan without any doubt.