As a newer trader I would sit down and just start trading. I didn't spend much time planning and calculating my entry, stop loss, and profit targets. Today, I would never place a trade without giving all three of these aspects serious consideration.

The majority of new traders do not limit risk--meaning they do exactly what I used to do and that is place trades almost randomly. It is extremely important to develop a sound and successful trading plan before you jump into live trading. Unless you are able to successfully identify your entry, exit, and stop loss, you are taking on much more risk than you ever bargained for, and are merely gambling in the markets.