Trading plan is the most important step in you process
The trading plan is one of the most important things in the process to get success in this profession and Yes! This profession; Trading.
Because this isn’t for you if trading is a hobby and you don’t see this like a profession and real life change. Prosperity, solvency, profitability and real financial independence.
In case this article isn’t for you if you aren’t willing to pay the price in discipline, perseverance, preparation and true personal transformation.
Also if you aren’t willing to replace habits, work on your mindset, get challenges that will test yourself management tools over and over again. This isn’t for you.
Even if you have faith but with excessive positivism. Believe that the success of the world’s traders is based on a shot of luck, this article is certainly not for you.
Because there is a lot of information and tools to learn trading. Using this knowledge intelligently to create a trading plan.
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As with any plan, a trading plan contains a structure that provides order, determines parameters, defines limits, and has indicators that are reviewed and modified. It has strategies and contains specific actions for each case.
As any plan, this is constantly adding and updating new things from what happens in the environment. In this case on the market and the trader. It’s flexible and can always be improved.
Like any plan it’s reviewed before, it’s followed during process and recorded after process to be adjusted. Like any plan there is not a master plan for all, nor all markets, there is no magic recipe, much less an infallible plan.
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Strategy
If You have a guide with the step by step of your analysis: Which contains your particular strategy of times, days, based on observed behavior and back testing that helps to have experience. Build your own criteria which is constantly contrasted with authors and communities of experts, forums and information from people who have already made it possible and sustainable. By testing ways and constantly educating yourself. If you have something like this you are in the groove of those who have a trading plan that promises success.
Risk
At the same time In this plan next to each action within each strategy, there must be an estimated risk. One to the worst scenario, one for the intermediate scenario and one for ideal scenario, every step must be to have the consciousness of what you risk, how far you can exceed daily, how much risk you project weekly and monthly. As well as you project to grow with percentages, you must always project the possibility of losing and how you are willing to lose; Besides having contingency plans, because for some reason you exceed and burn an account. Every plan must contemplate start and end cycles.
Strategy and Risk; Sounds simple…Well formed, they are the starting point to success!
Important: The information and/or knowledge expressed in this article shouldn’t be taken as investment recommendations or financial advice. All investments and/or actions involve a risk and each person is responsible for researching, educating and analyzing before making an investment decision.
