Process and psychology
A written plan and if-then rules
Deciding in advance what to do in a specific situation makes doing it more likely.
Well documented
Found repeatedly in peer-reviewed work or regulator data.
Strong general evidence. Not tested on traders specifically.
What it is
An if-then rule links a situation to an action: if price is inside the news window, then no new trades. A meta-analysis of 94 tests found a medium-to-large effect on reaching goals.
What it suggests
The studies were mostly about health and study goals, not trading. The mechanism, moving the decision to a calm moment, fits trading well.
How to check it
Write each rule as an if-then and add the reason in the trader's own words.
Common mistakes
- Writing rules that cannot be checked.
Sources
- Gollwitzer and Sheeran (2006), Implementation intentions and goal achievement: a meta-analysis, Advances in Experimental Social Psychology 38 (94 tests) (citation and headline finding only)
Related lessons
Written in our own words. Education only, not financial advice.