What is Trade Plan? Why it is essential

[Neha Narayanan]

Trade plan is required by investors to decide which shares to buy/sell and calculate the level of stop loss after proper analysis of stocks in the market.
It is essential to properly calculate the risk reward ratio and make a profitable investment.

[Rajesh]

Trade plan is about estimating risk and return of a stock and investing quantity with caution. Without proper trade planning, the buying and selling of shares might go wrong and result in loss.

[J Santhosh Kumar]

In Trading there are lots of options available. It is called as Instruments.

1. Intraday Trading
2. Delivery
3. Future and Option Contracts
3.1 Options – Call option and Put Option

While analysing the Trade for a particular stock depending on the stock move either of the above instrument has to be selected. if it is a day achievement and sure of it the some plan and if its doubtful then selecting some option contracts if it is sure movement with few sessions then can select future contracts.

[Divya E R]

A trading plan is a systematic method for identifying and trading securities that take into consideration which includes time, risk, and the investor’s objectives. A trading plan outlines how a trader will find and execute trades and under what conditions they will buy and sell securities, how large of a position they will take, how they will manage positions, what securities can be traded, and other rules for when to trade and when not to trade.

[Author]

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