Topic: WHY DO WE NEED A TRADING PLAN ? (Read 15610 times)

- Having knowledge but not complying with the trading plan can NEVER be profitable.
- Why need a plan?

* Reason 1: consistency is very important in trading, as it honestly evaluates the success level of a trader. The trading plan will help us stay consistent with the goal. Read it every day and adhere to it.

* Reason 2: this is business and so business success must ALWAYS be planned.

- What does the trading plan need?

1. A trading system: the heart of the plan, must be thoroughly tested with past data (back test).
* Include the necessary information: time frame, conditions for opening and closing transactions, level of risk per transaction.

2. Transaction procedure: the core part of the plan
• When will you analyze the market, evaluate the transactions ?
• When will you actually monitor the market to carry out transactions ?
• When will you evaluate transactions in the day?

3. Your thoughts: The hardest part is leaving your emotions out of the transactions.
• Just look at THE CHART SHOWING WHAT, NOT WHAT I WANT TO SEE.
• DO NOT TRY TO TAKE BACK, FORGET THE LOSS TRANSACTIONS.
• DO NOT LOSE YOURSELF, TAKE LESSONS FROM A LOSS.

4. The shortcomings of the self: concealed weaknesses, do not like talking about it. This section will follow objectively to track yourself. For example:
• We tend to close transactions soon.
• Does not comply with the trading system principles.
• Does not comply with the money management principle.

5. Personal goals: make money, discipline training, mental training, training self confidence. The goal is to help us through difficult times.

6. Record your transaction : record the transaction and why you open the transaction.

The best way to execute a trading plan is when you are not in the trade. Build yourself a trading plan that will guide you in the market, and this is actually the most effective way to actively remove the loss transactions due to emotion.

Trading without any trading plan will ve the same thing we jump in to gambling, because trading plan possible to minimize the risk and to maximum the profit. No one trader possible to make profit by consistenly without any trading plan.

But in crypto , they are totally unpredictable so even experienced trader can experience losses !

Yes, trading plan is minimalize the losing chance or controlling the trading !
Just want to say for preparing the worst when you decide to keep trading on it

a trading plan must be needed, because trading cannot be carried out easily. must have a plan, technique and others. it is useful for making profits and also minimizing the risk of large losses. because many beginner traders who can not control and provide trading plans and they have failed.

Trading plan helps us to accurately gain from out trades. Without planning, we might end up lossing on our trades which is not a healthy indication for a business.

Long term trader doesn't need any trading plan other than how much profits you aiming for but short term and day trader definitely need the strategy  for the current maket condition.Just holding until the price increase isn't for trader they need to pull out profits even when the market is dull and bearish.

Yes if we will have plan about what we are doing we will reduce the risk, we will know what will have to do at the movement of the market, we will have to make plan that how long we are going to hold and how long we can take it as saving, and trading is good for long term trading saves our money from suffering lose, we should know when buy and when to sell.

We need a trading plan because without a trading plan we cannot achieve success in trading from trading. Everything is needed for proper planning and when there is a question about trading then there is no other way than proper planning. Trading is a very difficult job and it is more difficult to earn with this work. If we do not have the right planning for trading then we have to face financial losses. So, we should take proper planning for trading.

⚠️ if you are holding any altcoin just hold it at all cost and don't sell with loss.
For now you should stick on these 4 coins until btc get stable.
#BTC if it goes to +5600 convert it to #USDT
#BNB can enter it around 38k-39k
#ENJ can enter it without worrying@2850-2900 will hit ATH after btc get stable
#WABI can enter it @5800-5900

If you entered #WABI #ENJ # BNB as soon as you see 3%-5% gain book your profit because btc is still unstable and gaining 5% in this condition is excellent otherwise if you want more profit just buy them and close your binance app for a week until market recover

Trading plan could provide us a desired guide on how to manage an asset, whether the price dumped or pump a better price. If you're holding a long term asset you needed to wait for several months in order to gain a profitable value in order to sustain in the long run. Don't apply day trading using buy and sell method when you find that asset has no progress at all. Planned investments could have positive impact on each and every milestone of your trading career. If you're doing every strategy in accordance to your will and perseverance, one day you'll be one of the successful person full of skills that cannot be stolen. Because being a trader isn't just a trial and error but a serious task that involved money.

I really read too many of these rules. but for the crypto market, you cannot apply most of the above rules. because the decentralized market always has very absurd things and we need to follow it if we don't want to die. In my opinion, new traders should try to invest in small amounts, they will learn faster instead of reading too much.

well, it's like planning what to do. when you don't plan what you are going to do, it makes the possibility of risk getting bigger. it's not different from trying or gambling. therefore, the strategy is very important.