What is Trade Plan? Why it is essential

[kanakaraj]

Trade plans are important to make money in stock market. It give the details about risk vs reward.
The person trades with knowledge and discipline only can succeed in trading.
Fundamental and Technical analysis helps for making trade plan.

[KRISHNA KUMAR MS]

Trade plan consists of the following info:

• Position (long / short) and entry at what rate (limit rate, above or below a rate, market rate)
• Risk
• Reward

 

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. 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, knows why and can rectify his mistakes.

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.

[Suriyaprabu]

The trade plan consist of

positional (long or short)

Risk

Reward

The Trade plan is essential because every trade has to to be done with plan and we have to analyse the risk and reward ; otherwise it becomes a gambling

 

[Vinoth Kumar]

Analysing Risk and Reward.

[sreevalli]

This trade plan consist of Risk vs return analysis

The knowledge and discipline is the key point of trade plan

POSITIONING(Long/short) and entry at rate (limit rate/ above and below a rate/ market rate)

When it is not done proper, it become gambling

[Author]

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