A trading plan is an outline of any given trade. It defines why you’re making the trade, and when and how it will be executed.
A trading plan takes into account your own personal trading style, risk tolerance level, and expectations for any given trade. When you follow your trading plan, you’ll be better able to keep a level head while trading, thus minimizing mistakes and losses.
Those that are serious enough about trading recognize the importance of working out all the fine details that will lay the foundation to get from where you are to where you want to be. You must see the creation of your very own trading plan as a blueprint that harmonizes in the most concise and descriptive manner all the rules that will govern your trading. A trading plan is like an outlined to-do list of all your trading activities.
Comments (0)