Make a Trading Plan for Consistent Profit

A trading plan is a trading system used by a trader when making trading transactions in order to achieve the expected goals. Trading plans are very useful to help traders stay focused and consistent in their initial plans before trading. For a trader, the existence of a trading plan is needed to help get consistent trading results every day.

Consistent trading results every day is better compared to fantastic trading results in one day, but can't repeat it again in the future. But it would be even better if the trading results are fantastic and can repeat it every day consistently. The existence of this trading plan is expected to be able to consistently achieve the profits that have been achieved. A good trading plan, compiled based on experience and using a method that fits the end goal expected by the trader.

One of the factors that greatly influences success in trading is discipline. With this trading plan, it is hoped that a trader will have guidance in discipline during trading. Therefore, in making a trading plan, it must be made correctly and objectively in order to train trader discipline to obey the rules that have been stated in the plan.

If a trader is forced to trade with a lot of technical variables or fundamental data used, the trading results obtained are increasingly inconsistent. This is a psychological hurdle that must be faced by a trader. The next obstacle is the patience of a trader to wait for the right time to open a position. Patience waiting for the signals formed by the market will increase the chances of success and trader confidence. As the trader's confidence increases, another psychological barrier will be created. Excessive confidence in trading needs to be avoided, because it will damage the trading plan that has been made.

For traders who have low flying hours, you will see the difference with professional traders in managing this psychological barrier. The best way to reduce emotional involvement in trading is to create a definitive trading plan with a clear trading scenario of what can be taken to deal with any market changes.

There are also traders who don't use a trading plan when they are going to trade not because they don't have a trading plan but because they still don't know how to make a trading plan and what the content of the trading plan itself is. Actually there are no special criteria in making a trading plan. Actually a good trading plan for traders is one that we can comfortably apply and according to the abilities and knowledge we have about the market. It doesn't have to be complicated and convoluted, the most important point to remember is that we must seriously and seriously implement a trading plan every time we open a position.

The most important thing to consider in preparing a trading plan.

1. Determine the strategy for entry. 

Determine the best way or technique from your own experience in opening positions in various market conditions. Of course, there are lots of entry techniques used by traders, just choose one. If it has been determined, then keep in mind that this entry technique is the best for certain market conditions. The thing to note is to know market conditions, it requires separate flight hours.

2. Determine the risk/reward ratio. 

This risk management scenario must be applied to every open position. Make sure that the sizing parameter is in accordance with the available balance

3. Set a stop loss target. 

Sounds very trivial to determine this stop loss position. But the conditions will be different if our position has been floating quite a lot. Therefore, before opening a position, first determine the stop loss that we will agree on. Mistakes in determining stop loss positions can result in the account becoming MC.

4. Determine the exit or take profit strategy. 

The exit target must also be determined before positioning according to the desired reward. Do not determine the exit level while the trade is in progress, because it will involve emotions in deciding it. Determining the exit position before making a trade will be more objective than determining it after making a trade.

5. Keep journals and notes for evaluation. 

Every position that has been closed, whether it generates profit or loss, is recorded in the journal. Making this journal serves to evaluate the trading plan that we have created and run. Make improvements if the journal contains deficiencies in our trading plan. Likewise, if we find advantages we can maintain or increase these advantages.

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