Greetings, my fellow traders.
Today, I would like to share with you guys my thoughts on the importance of having a trading plan.
First of all, lets start with a few questions in which you can ask yourself, to help further understand what you want in your own trading plan.
1. Which pair(s) am I going to trade?
2. Which timeframe works the best for me? The 4h chart? Multi-TF analysis from the 4h down to the 15min chart?
3. Which trading session is the most convenient for me to trade in based on my timezone?
4. What kind of market conditions do I want to trade in?
5. Am I more of a swing trader or a scalper? What is my personality type? Can I hold trades for long? Or would I prefer to be in and out quick?
6. What is my strategy and entry/exit plan?
And there you have it. These are the questions I asked myself when I was developing my own trading plan, which of course sparked a chain of other questions I had to ask myself. Give yourself some time to think about those questions, write down your answers to it, calibrate it a little, and STICK TO IT! Your trading plan should always be systematic and mechanical, where as long as if one of your conditions to take a trade is not met, ABORT!
But wait, so why is having all these important? Why do you NEED a trading plan?
Well, the real question is, why not? Having a trading plan ensures that you leave your emotions out of trading. Trading is like running your own business, investing in yourself. Do you really want to do all that, without having a plan? The common human emotions that come up during trading - like greed, fear and hope - causes havoc, so having a good way to manage them when they inevitably arise can help you overcome many common trading pitfalls.
Having a clear trading plan also gives you confidence to trade. Taking a trade in which you set the rules for yourself, and know it's profitable, feels good. Having a trading plan lets you manage your own expectations from the outcome of any given trade. It lets you see and tell yourself that even though the current trade may not be a win, you know that you will be profitable in the long run, because of all those hard work you put in back-testing your strategy and setting rules for it. And all that translates into you not giving yourself headache from a losing trade, allowing negative emotions emerge and affect the next trade that you take. You'll NEVER want to let your emotions from a bad day at work, arguments with friends/family, come into trading(trust me, I know). When approaching a field like trading where personal decisions translate into profits or losses, having a clear-cut and easy-to-follow trading plan can make the difference between success and failure.
I can go on and on about why traders need a trading plan. But after reading what I wrote so far about what's at stake here, do I really need to say more?
Are you ready to be profitable?
Thank you for taking the time to read this, I hope I've not made this too lengthy. If this post does get somewhere and some of you have any questions/need help, I'll be very happy to receive your message on chat. As always, stay safe and take care.
Today, I would like to share with you guys my thoughts on the importance of having a trading plan.
First of all, lets start with a few questions in which you can ask yourself, to help further understand what you want in your own trading plan.
1. Which pair(s) am I going to trade?
2. Which timeframe works the best for me? The 4h chart? Multi-TF analysis from the 4h down to the 15min chart?
3. Which trading session is the most convenient for me to trade in based on my timezone?
4. What kind of market conditions do I want to trade in?
5. Am I more of a swing trader or a scalper? What is my personality type? Can I hold trades for long? Or would I prefer to be in and out quick?
6. What is my strategy and entry/exit plan?
And there you have it. These are the questions I asked myself when I was developing my own trading plan, which of course sparked a chain of other questions I had to ask myself. Give yourself some time to think about those questions, write down your answers to it, calibrate it a little, and STICK TO IT! Your trading plan should always be systematic and mechanical, where as long as if one of your conditions to take a trade is not met, ABORT!
But wait, so why is having all these important? Why do you NEED a trading plan?
Well, the real question is, why not? Having a trading plan ensures that you leave your emotions out of trading. Trading is like running your own business, investing in yourself. Do you really want to do all that, without having a plan? The common human emotions that come up during trading - like greed, fear and hope - causes havoc, so having a good way to manage them when they inevitably arise can help you overcome many common trading pitfalls.
Having a clear trading plan also gives you confidence to trade. Taking a trade in which you set the rules for yourself, and know it's profitable, feels good. Having a trading plan lets you manage your own expectations from the outcome of any given trade. It lets you see and tell yourself that even though the current trade may not be a win, you know that you will be profitable in the long run, because of all those hard work you put in back-testing your strategy and setting rules for it. And all that translates into you not giving yourself headache from a losing trade, allowing negative emotions emerge and affect the next trade that you take. You'll NEVER want to let your emotions from a bad day at work, arguments with friends/family, come into trading(trust me, I know). When approaching a field like trading where personal decisions translate into profits or losses, having a clear-cut and easy-to-follow trading plan can make the difference between success and failure.
I can go on and on about why traders need a trading plan. But after reading what I wrote so far about what's at stake here, do I really need to say more?
Are you ready to be profitable?
Thank you for taking the time to read this, I hope I've not made this too lengthy. If this post does get somewhere and some of you have any questions/need help, I'll be very happy to receive your message on chat. As always, stay safe and take care.