Topic: What is Trading Plane ? - page 3. (Read 575 times)

Is this a trading plan, I'm finding it difficult to see how it fit into what the OP is asking about. Trading plans show revolve around what you do in a trade or to excute a trade which you have already highlighted some with your reply but this I quoted above shouldn't be among. Reading trading related books is needed to improve your trading skills, it should be in that category.

In your trading plans, things needed are entry point, exit point, amount willing to risk, calculated risk, backup plans etc incase your trade doesn't favour you. This is one of the reason may traders get rekted because they don't have plan B. They just invested all their funds and time into their current trade that if things doesn't favor then, they get so depressed that they have to give up.

In everything you do in life, there always has to be a plan to back it up. There is a saying that when you fails to plan, you are planning to fail. This is why one needs trading plan in order to guide them doing trading. Lemme show you how my trading plan looks like.


MY TRADING PLAN

I would earn 100% of my trading equity in a period of four weeks

I would make 25% of my initial capital in one week.

For any consecutive losses, i will half my chosen lotsize.

I would not trade more than 7 markets in a day.

If i have more than five loosing trades in a row, i would take a break
for 2 consecutive days to study my strategy and the market.

I would withdraw 50% of my account to invest in non forex business.

I would never risk more than 4 percents of my account in a single trade.

I would read more trading books whenever I'm done with my weekly target.

What do you think it's the backup plan, isn't it extra funds available in your fiat stored somewhere when the market is at red condition, this is used to buy when the dip is heavy to recover the lost so far if the price pump unexpectedly, because selling at loss won't let you benefit from trading.

I would say that having a trading mindset and having a trading plan are two very different things.

You may have a trading mindset but without a proper plan, you cannot execute and cannot convert your thoughts and feelings into cash. While if you have a trading plan but you don't have the mindset yet, you will make some profits but will fail to sustain them for longer because you don't have the patience or the mindset to stick with it.

A successful trader requires both, a good mindset such that you give yourself time to groom and a good trading plan where you have some leverage for bad trades and a backup plan to recover the lost funds.

Trading plan means actually a list of direction which is previously made by you so that you don't make any fault during trading. Basically we all do some plan for future, but after few days we start to forget one by one or most of them. But someone list them in a note book/in digital device and keep it in safe to follow it in future. Then there is a very less chance to forget them and the task will be according to your plan.

So for doing such thing you must have some experience in trading, You must have to knowledgeable in crypto otherwise you list some false activity too and it causes loss in future.

Trading plans are not only for cutting your losses early but also for maximizing your chances for profit-making. I mean you should focus on both of these things so that you can make consistent profits out of crypto trading. We need to be proactive for profit hunting rather than being defensive by being avoiding losses while trading. Being proactive while trading indicates that our plans should be in a way of finding more opportunities to make profits on all possible situations.

Honestly we can get rid of all these hassles if we choose hold term based trading rather than trying to catch short term swings. All type of trading, we must need good plans but long term based trading will give you enough time to make changes or not require your immediate attention due to any of sudden changes in market conditions.

Trading is not easy, not a joke since it involves money. A trading plan is one of the important things in trading.
Trading plan is like a gun and a bullet in a war, you go to war without a gun and a bullet, you are useless.

Glad that you are aware of a trading plan, keep it up. Once you already have one, another difficult task or practice is maintaining the trading plan you have, like sticking with it and getting used to it. Since your trading plan may not work in a lot of your trades at the beginning, but as time goes on, you may find how will use it properly.

While demo is another way to go I believe if you aren't careful you might lose your way with demo, demo make you takes risks that if you try in live account might end you in losses. You can basically put in some few dollars to serve as motivation not to lose as if you were to lose those few dollars you can lose thousands more, that way you'll be very determined to succeed as executing a profitable trade.

If you have perfected the skills of trading, you don't have to b afraid and to have a successful trading plan, one most have had the skills of trading understood to some extend. A trading plans has to do with your buying in point, take profit or stop loss in case the market doesn't go as you have predicted.

If you don't have all this in your plans then it's as good as you just gambling on the casinos out there. You must know when to sell as if you allow greed take over your emotions, you'll end up losing the profits that you have already achieved.

I would definitely follow up these check list when it comes on making trading plans which i would be saying to be that somewhat accurate

based off with experience which would really be needing to have when you are dealing on making out trades with this market.

Trading plan is something you do prepare for you to make out necessary steps for you to make money but of course dealing with this place

isnt something simple as it sounds.You would really be experiencing lots of things like trials and errors before you do succeed.

Nothing big deal here. A trading plan is all about how you are managing things.

It includes things like:
when you are going to trade like US session or UK or Asia session.
how much profit/loss you're going to gain/afford on daily basis.
how much risk is good to go with when you're picking calls.
and etc.

There should be everything at defined levels before you are opening any trade. So that you can handle those situations before experiencing market pressure. It is kind of you should be aware of everything well in advance so that you can handle situations more effectively for cutting your losses at minimum levels.

When it comes to trading plan then it would be particular talks to;

1.Fund management
2.Risk management
3.Emotional handling
4. Market common indicator usage

You should really be mindful with these factors as if these things are the main ones that should be considered
first so that you would able to sustain yourself here on the market.

Trading plan is having it in mind that you are wanna start trading to have profitable returns not gamble..
For a successful plan. You need to start with a demo account first and from there, you will know if you are good to go

If you want to create a trading plan, you need knowledge first before anything else, because without this thing it will be
hard for you to apply it. If ever you are knowledgeable here in crypto trading, well then you can able to create a plan for it.
Where you have a goal target for profit, were how many percent of earnings you are aiming and in what price you want to earn,
something like that.

You mean ‘trading plan’ right?

A trading plan is a method or strategy you use to trade cryptocurrencies. First, you should have a good trading plan. Only then you can make money from the crypto market and adapt to the market’s volatility.

How to create a good trading plan?
First, decide why do you need a trading plan.
If you are doing day trading, you need to spend more time, whereas it is not the same for swing trading or HODLing.
Your trading plan should be simple and SMART (specific, measurable, attainable, relevant, and time-bound.
Decide how much you are willing to risk. The risk-reward ratio helps to cut your losses and trade strategically.
Assess your crypto market knowledge and decide how much money are investing in trading.

One of the very first steps to learn and practice is knowing what are support and resistance, how to identify them from charts and practice to use them for waiting buy orders and target to take profits.
➔ Bitcoin Support and Resistance for dummies
➔ Golden cross and Death cross

Many people only learn theoretically but don't apply what they learned practically. In practices, you will see many patterns, methods fail for you and you will have to choose the one that works best for you. When more experience (from trading time and losses), you will be able to mix a few methods and customize yours.

Exactly but it does take a lot of time.

Because you venture into cryptocurrency you have to first have a trading plan you can't just go into trading without a trading pattern that works for you it might lead to lose of your fund which is very bad you have to develop the best trading plane which works for you in order to make a perfect income. Everybody has the pattern that works for them so you have to create your own and don't follow other people's pattern but the only pattern that I know that generally works for everyone is buying a coin when the price is low and selling when the price is high and you have to wait again for the price to drop and buy again and wait for the price to pump then you can sell again. As a newbie that's the best method you can be using before creating your own the method works for almost everyone and is kind of easy.

A trading plan is really necessary, but only the most general one. In addition, the plan should have many scenarios for different situations. After all, the market is unpredictable and everything can go as you please. I think a plan that is too harsh is stupid. Thus, we impose our scenario on the market, but this does not work that way. The market lives by its own laws and it doesn't care about the plans of some traders there. We must adapt to the market, not the market to suit us.

You have to work hard for create a trading plan.

Cryptocurrency trading is risky.  So sometimes you can lose.

To make a good trading plan, check the project details and concept. If you see that their currency may be more in demand in the future, it may pump. And also look at the past price chart of that currency.

The way you create your own plan is to make your mistakes and don't be scared to do so. You can allow yourself to make little mistakes and you study such mistakes. If you study and grow in the mistakes you are then going to have to build upon the achievements on it. Having your own plan, you are strategically placed for profit easily because mistakes made will build you better.

Yeah, it is indeed difficult to make a trading plan. Given that market conditions can change and market supply and demand can make the price of a currency increase or decrease. But at least maybe my explanation can help you about this trading plan.

A trading plan is a system, a set of guidelines used for making transaction decisions that will help traders achieve their goals. Trading plan is useful to help you focus on planning and executing a trading strategy. For a trader a trading plan is necessary to obtain consistent trading results.

Important things that must be considered in making a trading plan:

1. Determine the strategy for entry. Take the best way or technique from your experience applying various entry methods in various market conditions. For example, you choose a reversal pin bar in trending market conditions (for a price action strategy) with a moving average supporting indicator, then make sure that this condition is the best and most accurate for entry into trending market conditions when compared to other ways. Besides that you also have to understand the market situation and market sentiment, and to understand this requires flying hours.

2. Determine the risk / reward ratio. You must apply this risk management scenario to every position that you will take. Make sure you understand correctly about position sizing which is the most important part in determining risk.

3. Determine the position size according to the stop loss target. Position size can change according to the risk of stop loss per trade that we specify. The risk per trade should be determined before setting the stop loss level.

4. Determine an exit or take profit strategy. The exit target should also be determined before entry, according to the rewrd we agreed on. You shouldn't set an exit level when the trade is in progress, because our emotions tend to get involved when we trade without an exit target. We will be more objective when we don't have a position.

5. Keep a journal and notes for evaluation. We recommend that for every position that has been closed, both profit and loss are given a note to evaluate the quality of the strategies and plans that we have made, perhaps for us to improve in the future.