The Importance of a Trading Plan
Trading is a business, so you have to treat it as such if you want to succeed. All the traders who obtain a constant profitability in this business, as can be suspected, have a trading plan, this is what makes the difference between being part of the minority that profit or not.
If you can not plan, then you have already planned the failure.
But what is a trading plan? There are two fundamental points when trying to define a trading plan: The trading plan is your rules on what should be done, why, when and how. It covers your personality as a trader, personal expectations, risk management rules and your trading system (Pre-market, entries and exits). The trading plan must be simple, many think that being more sophisticated will be more efficient, but it is not. Being more complex is almost impossible to follow, as it leads to over-analysis that is difficult to come to execution. To define a trading plan for our strategy To define a trading plan for our strategy We must gather in the procedures the understanding and use of concepts but with business vision. It is given that in trading we are people with high egos and it is considered that the more sophisticated, the better you are. However the results of the highly sophisticated people are not seen, those who work simple yes. Now, simple does not mean bad, or does not have its degree of sophistication, it simply means that it should be easy to analyze and execute efficiently and effectively. There are other traders who have it , because they said it was necessary to create it to see so desired results, they did it in a nice template and saved along with other documents finish, however this does not work well, actually you can do it on a napkin If you want, the important thing is that you respect it and put it into practice. It is the backbone of your business, and businesses are jealous of the respect and importance you give them. Learn it , analyze it modify it if necessary, but mostly run it, it is he who will give you the benefits and especially the chaos that will protect markets represent. Final reference on the article and we know the importance of a trading plan We conclude the article with a reference that I hope will help you and above all so that we keep in mind always the importance of defining basic guidelines corresponding to a trading plan.
If you can not plan, then you have already planned the failure.
But what is a trading plan? There are two fundamental points when trying to define a trading plan: The trading plan is your rules on what should be done, why, when and how. It covers your personality as a trader, personal expectations, risk management rules and your trading system (Pre-market, entries and exits). The trading plan must be simple, many think that being more sophisticated will be more efficient, but it is not. Being more complex is almost impossible to follow, as it leads to over-analysis that is difficult to come to execution. To define a trading plan for our strategy To define a trading plan for our strategy We must gather in the procedures the understanding and use of concepts but with business vision. It is given that in trading we are people with high egos and it is considered that the more sophisticated, the better you are. However the results of the highly sophisticated people are not seen, those who work simple yes. Now, simple does not mean bad, or does not have its degree of sophistication, it simply means that it should be easy to analyze and execute efficiently and effectively. There are other traders who have it , because they said it was necessary to create it to see so desired results, they did it in a nice template and saved along with other documents finish, however this does not work well, actually you can do it on a napkin If you want, the important thing is that you respect it and put it into practice. It is the backbone of your business, and businesses are jealous of the respect and importance you give them. Learn it , analyze it modify it if necessary, but mostly run it, it is he who will give you the benefits and especially the chaos that will protect markets represent. Final reference on the article and we know the importance of a trading plan We conclude the article with a reference that I hope will help you and above all so that we keep in mind always the importance of defining basic guidelines corresponding to a trading plan.
No hay comentarios:
Write comentarios