👌 Successful Trading Plan

how to create a successful trading plan? trading plan a common problem that most traders face when starting out in their career is the lack of a proper trading plan most traders don’t bother with a trading plan because they think it will be complicated however, this is where they are wrong, because building a trading plan is easier than you think! nothing in life comes easy, and trading is no different if you don’t have a clear trading plan or strategy, you won’t achieve the results you want as benjamin franklin said «failure to plan is planning to fail » the importance of a trading plan of course, not many people believe what franklin said, but it makes sense, and experienced traders understand it they know that if they want to make money trading, they will have to choose one of two options follow the written plan methodically failure in trading trading plan as an obstacle the above may sound harsh, but it is true – it can be game over trading binary options without a clear trading plan is like riding a bicycle without training wheels few traders understand the importance of a clearly defined strategy some have a written investment or trading plan however, experienced traders who make money consistently will agree that having a trading plan does not guarantee success a trading plan is meant to act as a checkpoint it will help you stay on track and avoid losing all your money many people think they are better traders than they really are, and this false sense of superiority in funded trading programs can be fatal if your trading plan lacks preparation or is based on faulty methods, you will not succeed however, you will have a detailed report of your failures, and you can use it to identify your mistakes and correct them documenting your trading progress will help you avoid repeating costly mistakes and improve your strategic ideas so, if you want to succeed in trading, the best way to succeed is with a winning trading plan all traders should have their own plan that takes into account their personal trading goals and styles you will not succeed using someone else’s trading plan or strategy because it does not match your trading characteristics ideas to consider when building a trading plan how to avoid disasters 101 treat your trading like a legitimate business respect it, treat it right if you want to succeed to avoid disasters and create a proper trading plan, conventional wisdom suggests read some books on trading open a brokerage account start trading this sounds like a good plan, but i’m here to tell you that it could be a surefire recipe for disaster this may not be the trading plan that will bring you success traders should always do the following think outside the box take market fluctuations into account always study the market to assess the potential for a reversal or pause act based on these principles before you start trading have a clear trading plan allow for re evaluation of the plan after the market closes the plan should be flexible and change depending on market conditions (you will improve your ability to read the market) adjust your strategy based on experience as your skill level increases building the perfect trading plan the best way to build a successful trading plan is to make sure you have all the necessary components most traders have no idea what to do or where to start luckily for you, that is exactly what you will learn today do your homework before you start trading – start your homework before the market opens be vigilant and more informed about what is happening in other markets around the world are they going up or down? check when earnings or economic data is coming out and create a list (put it somewhere in front of you and decide if you want to trade before a critical report comes out i would advise minimizing risk and waiting for the full report to come out ) remember professionals make trades based on probabilities they don’t bet on their trades 2\ skills assessment have a good understanding of your trading skills are you ready to test yourself in the market? what is your trading experience? do you feel confident in your understanding of the market? are you able to make decisions without hesitation? keep in mind that even professionals have a hard time reading the market if you trade the markets, you must be prepared to give and take experienced traders are always prepared they profit from those who do not have a clear plan and throw money away due to costly mistakes 3\ s et your risk level определите и установите комфортный для вас уровень риска, чтобы избежать дорогостоящих ошибок (определите это с помощью своей толерантности к риску и стиля торговли в любой торговый день он может составлять от 1% до 5% вашего депозита ) have the discipline to walk away and stay out of the market keep trading if things are not going your way because it is better to end it and start over don’t be stubborn 4\ psychological preparation be mentally prepared to deal with all the challenges that trading brings you get a good night’s sleep to be mentally and emotionally prepared if you are mentally exhausted, take a day off to avoid losing money (you should not trade when you are not in the right state anger, distraction or worry do not bring good results) some experienced traders create rituals to practice and enter the market with a positive energy level make sure there are no distractions near where you sit and trade 5\ preparation for trading before you start trading, clearly define them support level resistance level what is the market condition (trend, flat) 6\ set goals the goals of your trading plan should be realistic risk/reward ratios and profit targets some traders will not trade until the potential reward is three times the risk setting annual, monthly and weekly profit goals re evaluate them regularly to be prepared for any changes 7\ keep records all successful traders are well organized and keep records of all the trades they make, both winning and losing this provides a reference point for future trades so they know exactly what they did right and what mistakes they made you should write down important details such as goals entry and exit of each trade time levels of supply and demand daily opening range saving screenshots and their subsequent analysis entry comments on why you wanted to do the trade and what lessons you learned from the trade review your trading records frequently to analyze your system’s profit or loss, average time per trade, drawdowns, and various other factors (compare them in the future ) 8\ set rules for when to stop trading many traders make the mistake of not paying attention to when they should exit the market they are focused on trading to the finish line and do not want to end a session if it was a losing one you must learn to overcome this, otherwise you will not succeed remove emotions don’t take losses personally everyone has good days and bad days, and even the best professionals lose more trades than they win (the key to their success is limiting losses and managing their money well ) 9\ set entry rules setting rules for exiting the market is good, but you should also create rules for entering the market some traders do not do this and believe that exits are more important than entries but even traders should know the best time to enter the market it all depends on your trading style traders should set conditions for entering the market and ensure that you enter when the market is right one of the reasons computers trade better than humans is because they don’t let emotions get in the way of their trading they look at the conditions, and if the market conditions are met, they will enter traders don’t do this, which makes it harder for them to trade and win the best thing to do is set clear rules for entering the market don’t be angry with the market if you lose or feel invincible after winning a couple of trades base all your trading decisions on probabilities 10\ conduct an analysis after each trading day add up your profits and losses find out what happened in your trades write down your findings in a diary and check them trading plan — summary a winning trading plan does not always guarantee success you may have a lucky streak too, but try not to let it get to your head by sticking to what you think works for you the key to success in trading is self confidence and re evaluating every trade! over time, you will develop enough skills that you will not have to doubt your decisions while trading you can’t guarantee that a trade will be profitable because your chances of success depend on your winning, losing system and your skill it is important to remember that there is no winning without losing, and professional traders only enter a trade when the odds are in their favor the key to success as a trader is to reduce losses and maximize profits you may lose many trades, but if you stick to your trading plan, you will succeed don’t give up!