Why Do We Need A Trading Plan?
As an analogy, when we drive a car on the road, we must constantly abide by traffic rules in order to harmonize certain behaviors for every situation we are faced with. From stopping at a red traffic light, slowing down when at a pedestrian crossing, use snow chains in certain weather conditions, etc.
On top of that, since trading is such a mind game that involves money on the line, it can be very draining for one’s brain and cause irrational decisions without a plan of action. This is yet another reason why you want to be absolutely 100% certain of how you will proceed in each and every one of the thousands and thousands of situations you will encounter as a trader.
We must avoid by all means disorder from dominating our trading. After all, lack of discipline and inconsistency is the number one enemy of any trader. The saying “if you fail to plan, you’ve already planned to fail” couldn’t be truer. Trading is a business, so it must treat it as such.
The mastery in becoming mechanical on your trading actions is directly linked to your chances of success. When we drive our car, our behavior cannot deviate from the very rigid traffic rules or we might get ourselves in trouble, right? You must think about trading in the exact same manner. But this time, the ball is on your courtyard, you have absolute control.
On top of that, since trading is such a mind game that involves money on the line, it can be very draining for one’s brain and cause irrational decisions without a plan of action. This is yet another reason why you want to be absolutely 100% certain of how you will proceed in each and every one of the thousands and thousands of situations you will encounter as a trader.
We must avoid by all means disorder from dominating our trading. After all, lack of discipline and inconsistency is the number one enemy of any trader. The saying “if you fail to plan, you’ve already planned to fail” couldn’t be truer. Trading is a business, so it must treat it as such.
The mastery in becoming mechanical on your trading actions is directly linked to your chances of success. When we drive our car, our behavior cannot deviate from the very rigid traffic rules or we might get ourselves in trouble, right? You must think about trading in the exact same manner. But this time, the ball is on your courtyard, you have absolute control.
- 1. Why Do You Trade?
- 2. Define Your Daily Routine
- 3. Describe Your Entry & Exit Strategy
- 4. Trade Management
- 5. Review Trades & Keep A Journal
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.