What is Trade Plan? Why it is essential

[subbu]

Trade plan is necessary to ascertain risks and rewards,to fix entry and exit trade points,to optimize rewards and to hedge risks.

[Murugan Thanikachalam]

A TRADING PLAN helps us to answer the WHAT, WHY, WHEN, HOW a trade is to be done with the help of ANALYSIS, Emotional Control, Risk to Reward Ratio calculation and execution.
When the plan is implemented properly the  Trading Plan helps us to minimise our EXPENSES and maximise our INCOMES.

 

[Murugan Thanikachalam]

A TRADING PLAN helps us to answer the WHAT, WHY, WHEN, HOW a trade is to be done with the help of ANALYSIS, Emotional Control, Risk to Reward Ratio calculation and execution.
When the plan is implemented properly the  Trading Plan helps us to minimize our EXPENSES and maximize our INCOMES.

[Balaji]

Trade plan: A trade plan should consists the following:

1. Stock name
2. Trade position
3. Entry price
4. Stoploss
5. Target

The trade plan is very essential, in order to determine the risk and the reward ratio. It shows, that the stock trading is done with knowledge and discipline.

 

[kumaravel r]

Trade plan is which is planned with available data in the market and technical analysis. It determines when to enter and exit a trade

[Author]

Posts