A problem I see time and time again in my own trading, but more so in inexperienced traders, is when you miss a move in a stock or in the market, we tend to chase and push.  This is obviously a lack of discipline.  But how can you protect yourself from this?  First, let everybody understand that it is alright to miss a move, s**t happens.  The key is to not compound the missed opportunity by making bad buys or sales and lose money.  Make a new plan and ask yourself what needs to happen to get you back involved.  “If A happens, I do B.  If C happens I do D.  If none of this happens, I do nothing.”  For example, On Wednesday GS was in an upward trend.(chart attached below)  After I missed my entry point at 86, I was frustrated, but I kept my cool and I set a new plan.

GS gave me many opportunities to buy this stock on pull-backs during its 6 point up move.  My new plan was to watch GS as it broke out and to identify points of entry if it continued its upward trend.  In trending stocks I want to buy into pull-backs.  Watching a stock or the market after you missed your entry allows you to gather invaluable information that you will be able to use, which will give you an edge on your next trade.  GS, after moving 2 points, found resistance at 88, pulled back 1 point to 87 and found support just under 87.  That was my new entry, 1 point higher then my original plan.  GS then continued upward and exploded on huge volume through 88.  GS was then met with resistance at 90 and gave me another opportunity to enter the trade on a pull-back to 89.   GS exploded through 90 and ran another 2.85 points.

Even if I did not make another trade in GS after I missed my original entry, I would have gained invaluable information on how GS moves when it is in a strong trend.  This information will help me make money in the future.