Topic: The importance of a trading plan - page 2. (Read 562 times)

Yes, that's right. A trading plan is indeed a must for every trader, because without a trading plan he will not be directed. So every trader before deciding to trade is required to make a trading plan. Because with a trading plan, trading has a clear and directed goal, and with a trading plan we become disciplined when trading.

With planning, we can also determine profit targets and risk tolerance according to our wishes. That way, we are not only pursuing profit, but can also accept the risk of trading if we experience losses and of course we can control ourselves to avoid greed. In addition to planning that must be followed and adhered to, planning should not be easily changed so that you do not make the wrong decision in trading. So if asked is a trading plan important? the answer is very important, because trading planning is part of success in trading.

Having a proper plan is a must when you will make a trade because once you lose with your trading due to the volatility of the market you might make a wrong decision that causes you to lose more assets, a trading plan is your discipline in trading if you didn't follow this your planning becomes useless and you will now act depends on your emotions. No one would like to make a trade and just lose their money in an instant because of their wrong decision or else you will just giving free money and charge to experience in trade without proper plan.

This year I see that every trader must use a slightly different method and plan in carrying out their trading activities because current market conditions and trends are still influenced by hot issues from outside so that it can cause traders to use a slightly different method than usual. A close example is like when the decline occurred two days ago where traders and investors must have the ability and willingness to buy at low prices because the average coin has experienced a price drop when Bitcoin experienced this in the market.

You need strategy to be successful in trading, but in order to be successful, a trading plan should be laid out and is very necessary so you can work out on how you will use your stragey in trading. Otherwise, if you trade without a trading plan, even if you have a powerful strategy, you will find it hard to make it work because you don't have proper guidelines in trading that you should follow in order to end your trades according to your own desired outcome.

To me, trading plan and trading strategy are still the same thing you are talking about because all these things you mention here are things that we also use when we want to mention the strategy that has been used in trading as a successful trader, so I think you are talking about strategy. However, plan is very important for anything we are doing; if it lacks a plan, it will later fail. In trading, a plan is very good. Without a plan, the way trading works, a trader will break or always lose if he or she enters the market, but if there is a plan, that will be a guide for such a trader to operate in the market.

When you don't plan then trading is not for you because you need to know the amount you are willing to spend on trading and the amount of time, a lot of things have to be done for you to be able to trade well and I usually tell my friends that trading is special and only a few people can access the gift it comes with, yes financial plan should be the first plan because if you want to trade because without money you can not trade. and make sure the money you are trading is your money because I saw a lot of people already thinking of borrowing money to trade and what if you don't get your money back you will still have to pay back the money you borrowed.  and you need to have a good source of income in case you want to do some good trading everything is about your capital, the more capital the more money you have, I will even advise you to go to the extent of drafting your plans out so you don't forget the initial plan and also a way of initiation have to tally with the whole plan, have your plan and make sure you execute them.

Yes, it would really be always relevant in speaking about on having a plan because we know that dealing up something without having some good plan will really be leading you to nowhere on which you dont even know
on what you should really be that trying out to achieve. Also, one of the most important thing to consider about that risks management factor on which this thing would really be that important because this one considers on where you would really be that putting up yourself on making such decisions on that particular condition or market movement or behavior. You would really be able to see the importance yet you would really be finding yourself get prepared on dealing up with an unpredictable space. On the time or moment that you have found yourself that dealing with crypto then it would really be that relevant that you should really be that making up some plans so that you wont really be that making yourself getting lost. Trading without any plans or analysis is really just that as good that you are doing gambling because it would really be totally too risky to make out decisions without any basis. Whereas, you could really be able have at least that lesser risks on the time that you would really be applying something based on research.

When you do have plans then of course you would really be also having those back up plans on the time or moment that shit things happen then you do come prepared, which its not like into those who havent
done or consider one because on the moment that you do experience those things on which you hadnt that expecting then this would really be bringing up that kind of emotion on which it would really be causing up for you to have that loss of control specially on the moment that you would be handling your capital. On the time or moment that you do find yourself being that too impulsive then decisions would really be made out
isnt something that would really be good anymore because you had already that becoming that so desperate.

Yeah true, if we are dealing with anything in life, a plan is important and having a plan makes things easier to handle, it makes it a lot more profitable as well in trading. We need to make sure that we know what we are doing, and because of that we are going to make some good adjustments, it needs to be something that will take a while but it can happen.

We are going to cause a lot of trouble with what we have, and in order for us to grow further we are going to end up with some issues, it is going to be very hard.

What we need right now is to make sure that we deal with something that's going to take some time, and because of that we are going to see some changes. Of course it is not that easy to handle it all, but we can make that work somehow.

Planning ahead is what makes us from making mistakes, or more like if we make a plan and stick to that plan is what makes us from keep making mistakes. This is why we need to do a lot better planning and stick to it. If we end up with nothing and no plan, then we are just running around like a headless chicken and in that case the result will of course be a loss, nobody with zero planning could make a profit in this market, not even veteran traders.

Not only in trading because wherever we run a plan is something that is needed.
Especially if involvement in trading and without a good plan we will not achieve the goals of the trading that is done because we do not know what to do. Trading does involve a lot of analysis because it requires the ability to see the movement of coins in the market and this method is a little more difficult to learn without discipline.

With a plan we can create a strategy because we know what to do in trading.
People say strategy is more important than a plan, but for me with a plan it will be much easier to create a strategy. Both are interconnected and need prior knowledge to achieve perfection in trading.

Its not only "can" but it is really indeed unpredictable all the time and this is why having up some plans or having those kind of preparation is really that something recommended. You cant really just that make yourself
doing up some trades without any plans because this would really be causing up that loses on which you would really be might ending up on having those kind of regrets on just because simply you did really make it as if
you are doing gambling because on the time or moment that you dont have any plans on dealing up with trading then you are just basically doing gambling and its not something suggested with that kind of approach.
Plans and preparations arent really just that limited on trading alone but also in other real life situations as well on where proper planning and preparation would really be the key.Lets say that  you are planning to have some trading or having that involvement, then how you would gonna do it? Of course you will really be trying out to plot some charting and other fundamental applications on which it would really be that leading
up to have that much better analysis which increases the odds on making profitable trades in compared to those who have none. If you are really that tending to trade but without preparations then you are really just that doing gambling but sooner or later you will be able to see its relevance when it comes to this aspect. It would really be that so important that you should really know at least on what you are really that dealing on with.

Although overall the plan is not always a success but yes I can confirm that the plan is an important part in achieving success, everything will not run smoothly when there is no plan that you implement, especially this is trading which is an activity that involves money and risk. Everyone does not like losing money, but with planning especially related to risk management such as emotional management then it will be able to minimize the amount of risk that you will face.

On the other hand as you said OP that by having a plan then you will know about when is the best time to enter and when is the right time to exit, and that is a skill that must be possessed by every trader, because as we see not infrequently some of the traders who fall and get carried away in blind trading which ultimately makes them experience big losses, and this is why planning is important, because with that all actions will be measured based on good considerations.

Trading can be unpredictable at times, and you are correct. Even talented people lose money in trading, but they will not lose as newcomers since they lack the experience that motors have. It's a good idea to develop a trading strategy, and if it doesn't work, you can learn from others who are more experienced. since we are learning every day. I am not perfect at trading; I lose more than I win since I am still learning, but I believe in myself and will endeavor to be perfect one day. I focus on investment because I reduce my risk on it since investment whatsoever you invest on it one day you will be profitable if the price increases. but in trading if you have lose you lose you most get another funds to stakes again. But when you have get enough knowledge on trading you will enjoy it very well.

although beginners in trading can also use strategies and make trading plans. but the results may not be optimal. making a trading plan also requires experience. but everyone who wants to learn I think can try and learn it. the problem of results all depends on how much effort. his name is also a beginner, even those who are experienced can also fail in trading. it is not a problem of using the wrong strategy or making a mistake in making a plan. some situations may not be in accordance with the trader's analysis and predictions.

Everybody especially new traders may not yet possess the skill to properly set out a trading plan. It will even be harder to create a trading plan for yourself when you are self-taught because you may find it difficult to determine if your plans are correct. If you learn trading from an older trader who is more expert than you are, based on their experience, you as a new trader should be able to adopt their trading plan and strategy and then as you become more experienced make modifications to it. This is one good thing of learning trading from someone because you learn far more than theory.

These are the reasons why each trader should always prepare a trading plan prior to trading, so that there will be bigger chances to succeed than losing the trade. But even so, having a trading plan won't guarantee completely for a successful trading outcome. Experience will always be the best strategy towards trading. If you think you still don't have the sufficient knowledge and skills required in trading, yet you're able to make a good trading plan, still that won't make a profitable trader in the end.

A trading plan is always something that I've wanted to organize because it would go a long way for me to manage my trades because if there's one thing I have notice is the constant emotional struggle and the constant need to close trades when the trade goes in the opposite direction, even the tiniest bit and leaving trades longer to accumulate more profits even though there's already enough profits. It's just random, literally.

OP, you have talked about your trading plan. I'd like to see a sample of your trading plan. Nothing too fancy and you can remove any sensitive detail if needed. This isn't because I want to copy but to get some insights on what constitutes a trading plan.

Somehow you have a point. Instead of seeing OP showing us his own way of making his trading plan so that others can learn and assess, he is only citing the importance of a trading plan which I believe majority of us are already aware about it. Although everything you said is true, but atleast you should have made your post more constructive than seeing it as mere defining, that anyone who'll go for research will certainly get the same idea.

Every trader needs a trading plan that can help guide them on how they're going to trade. Without a trading plan, we are going to lose. Trading strategy and trading plans are the same thing with a different way of saying it as the strategy that you're using when trading is the same that as saying you're planing on trading in a particular way. There's no trader that has been successful without having a strategy that he uses to have good trades. But  have to be open to changing our trading strategy when it isn't working as it use to do and also learn to become very perfect in one strategy that we're going to use more often to win .

Of course having a plan in trading is very necessary because this plan is an activity that will be used when trading so that your trading is more systematic so that it can reduce the level of loss when you trade. So implementing a trading plan is very important, besides avoiding making the wrong decisions, trading planning will also make your trading simpler than if you don't have a trading plan at all.

This can be likened to when we use Google Maps or directions, with Google Maps you will be directed. if you want to travel to an area that you have not known before. You just enter your current location and enter your destination location, then Google Maps will provide the best route and directions to get to your destination without getting lost.

So trading planning is exactly the same as using Google Maps. Because with planning it will make your trading easy to achieve your goals so that you can get profit and of course it will make you more consistent.

In one of the links to sources related to technical analysis that outlines how to understand a trading plan, its definition and how it works in my local language, it took me quite 15 minutes to read and I read it slowly while trying to understand each point by point, although it is good and rational, of course I still think that if I don't master the science of how to master the market, the trading plan will not work as planned.
https://pluang.com/akademi/pelajari/analisis-teknikal-101/memahami-cara-kerja-definisi-trading-plan

In theory, it is explained and I agree that a trading plan that is made in a structured and measurable manner will bring us good results and is useful for managing existing risks.

There is something called universe assets and other things that may be in line, but in essence market control is very necessary because it is in balance with trading plans and strategies.