Topic: WHY DO WE NEED A TRADING PLAN ? - page 13. (Read 15610 times)

In any case, you need to set certain goals, otherwise you will be lost when you fix a profit, you need to periodically review your portfolio and add other assets

This is very insightful and appreciated. Many a times we jump into trades without having a clear cut plan on how long to be in the market, the amount of profits targeted on the trade, the amount of losses we're willing to take. Also, chasing trades makes people not to plan. It's therefore very vital to have a plan before even entering the market like you said

Thank you for sharing this with us and I think we should have to value our plan more than to place order.  In trading most of the price movement do takes us unaware and if you have trading before you will understand how trading plan is much important than any things in trading.

that is why it is said that trading is not something the everyone should try. and it is why there are a lot of losers in trading because it is not suitable for them but they don't want to accept it and continue trying to make it work and fail.
although you may not belong to that category, being affected by emotions is fine for beginners but as long as you are aware that this is something that you should get rid of and start being more of a solid logical trader instead.

What you mentioned can be said to be true, but the most difficult thing is to do what has been planned, and point number 3 is a pretty difficult thing for me to do because losing is greatly affects us mentally.

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.

This will work most of the time. Setting a goal in trading will motivate you to reach that certain plan. It is really significant to  make a plan lists as well as sticking to the plan such as reminding yourself not to be greedy, set aside emotions and go on even if you have a loss.

Yes we should be have trading plan before doing trading activity, this trading plan to know the level risk in trading and how to minimize it. Trading activity without trading plan will be the same like gambling, and doing gambling will never promising consistently profit. Purpose of trading is to get profit monthly, so we should be have trading plan.

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. 

Half of the work done by the planer, if we measure the plan before doing any work, then that work will not lead us to 50% success. The rest of the effort and fate. Forex market also means that if you trade properly before you open the trade, then 50% of your losers will not be the first. The rest will depend on your technical skills and fate. And if you dry the trade without the plan, the probability of the losers is 80% and the rest is a matter of luck. 80 percent of the forex traders may start trading with haste and emotions and 80 percent of them are lost.

- 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.