- This topic has 373 replies, 370 voices, and was last updated 2 years, 8 months ago by
.
-
Posts
-
A trade plan ensures that the trading decision is based on analysis and we have already decided on the stop loss and profit which ensures that we exit the market regardless of over powering emotions during market swings and maintain a balance. It helps us the follow the mantra taught, trade with knowledge and discipline.
Trade plan helps to trade with analysis of buying which share,company name and price ratio to reduce expense and increase income.
Doing a trade post analysing the risk appetite and reward is termed to be a trade plan . It is essential otherwise it is can be framed as gambling.
Trade plan gives you the stop loss and the maximum gain expected in a trade. This helps to exit the trade at the right time.
It is all about strategy before getting into a trade. We must have a plan of action by knowing the risk reward ratio, when to enter and exit, how to react to the market news. It is actually just pre planning what to do in case negative and positive results. This is actually the trade plan. If we have a trade plan and follow that with discipline then we can become a successful trader as well as get away from big losses and can avail maximum profits.
Without having a proper plan while doing trading is simply gambling where luck only favors.
- You must be logged in to reply to this topic.
