An important implication of the recent post on how to avoid bad trading decisions is that it is not enough to plan trades, write in a journal, or review performance. If we make decisions in cognitive, emotional, and physical states that are different from the ones we occupied during our preparation, we're likely to find that the decisions we plan won't always be the ones we act upon. Experienced traders don't just create a plan for a trade; they often plan a variety of possible scenarios for their positions based upon how markets behave, news that comes out, central bank decisions, etc. By anticipating a variety of events, these traders enable themselves to respond quickly in the face of surprise. This mental preparation is most effective if it is also emotional preparation. In other words, we want to not only anticipate a scenario, but also the thoughts, feelings, and physical states likely to accompany that scenario. If a market is topping, for instance, and my shor...