As 2013 comes to an end, Many new traders will enter market, Seasoned traders would like to improve their trading performance and traders who would have lost would like to turn their account in positive. I wish each one of them, a very Profitable year ahead.
My special thanks to my Readers, Wishing them and their families a very very happy and prosperous new year.
Trade Plan is key for success in trading and sharing few points which will help you to make a strong and tradeable plan.
The Trading Plan comes first and should account for the following parameters:
1. Entering a trade.
2. Exiting a trade.
3. Stop Placement.
4. Position Sizing.
5. Money Management.
6. What to Trade.
7. Trading Time Frames.
8. Back Testing.
9. Performance Review.
10. Risk vs. Reward.
Trading Plan benefits:
1. It will force the trader to select a trading style.
2. It will encourage market study.
3. It will aide in helping pick the correct trades.
4. It will prepare the trader for what the market has to offer.
5. It will help in properly monitoring and exiting trades.
6. It will keep the trader from over-trading.
7. It will help with finances.
8. It will keep the trader focused.
9. It will take the gambling out of trading.
10. It will make a better trader out of you.