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Tagged: Fundamental Analysis, Technical Analysis, Trade Plan
Trade plan is nothing but a plan to enter and exit the trade on the basis of RISK and RETURN (when to buy/sell,what to buy/sell,to buy or sell) .It is essential because if the trade is not planed properly it may leads to more loss.
<span style=”color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Trade plan is the analysis that is done before buying/selling a stock.</span>
<span style=”color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>To minimize our risk and maximize our reward.</span>
the analysis made on stocks to maximise the profit and minimise the loss to know as trade plan.
it is essential to know when to enter and exit the market to get maximum returns.
Trade plan is the proper study of risk to reward ratio of stocks before we try to buy/sell them. Without the trade plan trading is just same as gambling.
Trade Plan is to define which stocks needs to brought/sold, which instrument to be used, what is the margin( to understand the risk) and when to exit.
It is essential to understand and minimize the risk and monitor the market movement to the plan to determine the exit
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