How to Make a Trading Plan?
A trading plan is a system, a set of guidelines used for making transaction decisions that will help a trader to achieve his goals. Trading plans are useful for helping traders focus on planning and executing trading strategies. For a trader, a trading plan is needed to get consistent trading results. By making a trading plan, a trader is responsible for himself if the trading results are not as expected, and can immediately take the best steps on his trading account without hesitation and panic if the direction of market price movements is contrary to predictions. Here's how to create a trading plan:
Managing Finance or Capital
Managing finances or capital is an important thing in a trading plan. This is because the core of the trading business, with the expertise of a trader to manage his finances, his trading business will run well. For this reason, it is necessary to have regulations relating to the management of this money.
Clear Rules for Entry and Exit
The exit target should also be determined before entry, according to the reward agreed by the trader. You should not specify an exit level when a trade is in progress, because traders' emotions tend to be involved when a trader trades without an exit target. Traders will be more objective when they don't have a position.
This is a short article from us, hopefully it will be useful for all traders. Watch the video below if you don't understand!
Comments