What is Trade Plan? Why it is essential

[Swathi]

Trade is when a share has been bought/sold at an agreed price both by the buyer and the seller. It is essential because the shares could be exchanged in a way which is desired by both the buyer and the seller.

[Naveen]

trade plan is necessary then only investors might able to know the risk and return and make him to trade with knowledge and discipline .

[V.VEDANAYAGAM]

TRADE PLAN as the name suggests it is all about what to do how to do and when to do in stock trading IN the absence of trade plan the trader will be completely in darkness in stock market His success will be like flipping a coin or even worse than that. EVEN if he succeed he does not know HOW/WHY he attained success? whereas a trader with trade plan even if he loses he knows why it is so HE can in future cut his lossesimmediately

[Vijayakumar]

Trade plan consists of the following info:

• Position (long / short)
• Risk
• Reward

Trade plan is important since entire trade should only be a mere implementation of the plan; Otherwise the trade will only be a gamble rather than a logical one.

[Lakshmisudha R]

Analysing the risk and reward ratio is trade plan.

Trade plan is essential because it helps individual to trade with knowledge and discipline.

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