10 Steps to Building a Winning Trading Plan - Global Trade Magazine
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  May 23rd, 2019 | Written by

10 Steps to Building a Winning Trading Plan

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  • With the right risk management, you can toss up a coin and stay with your money.
  • Register in what market, what tools do you want to trade.
  • Freedom of choice in the market will not give you an advantage, so write it in detail.

There is one elegant formula in the materials: “fail to plan = plan to fail”, which is understood as “not to plan anything, it means to plan the failure”. No one starts a business without a business plan, but why does the majority start trading without a plan?

Trade is an occupation that requires constant work on yourself. If in most spheres of life you can remain yourself to be successful, then the market is not going to adapt to anyone.

The market uses the darkest sides of the personality to turn you into fuel. Therefore, think about the main weapon of the trader – a trading plan.

While writing a trading plan, you need to remember one thing – you create it in order to comply. This is the set of rules that must be observed in each situation and never deviate.

This is the set of rules that must be observed in each situation and never deviate.

Setting goals

From the very beginning, accept the fact that the safe market trading plan is not a static thing. As you develop yourself as a trader and improve your skills, the plan will also develop.

You should not look for the perfect plan from other people, it does not exist. Each trader is unique, but there are generally accepted elements that are worth taking into their plan.

Inspection and analysis of the sale point

First, conduct an external examination and analysis of the point of sale. Go to the point and greet the staff and decision makers. Then conduct internal inspection and analysis of sale point, if necessary, adjust the purpose of the visit. Conduct a preliminary survey of sellers and together with the staff of the point take off the leftovers.

Skill assessment

Are you ready to trade? Do you have a proven system you are sure of? Are you ready to follow your rules without hesitation? Understand that you can work by your own rules; the market cannot impose anything on you until you give up the slack. Be a pro and take your profits from a crowd that does not have a winning plan.

Determine how to trade

There are many ways to trade in financial markets, such as scalping, day trading, position trading and more. Some choose one option, others successfully use several. Whatever choice you make, the most important thing is to have an understanding in advance of possible scenarios and actions to be taken. Write them in the trade plan.

Define your market

Register in what market, what tools do you want to trade. Consider that the main movements occur at the same time, be on the market at this time.

Increase your level of knowledge in your tools, see what influences them and take this information into account in trade.

Define your trading system

Trading system – a number of rules that will help bring trade to automatism. Freedom of choice in the market will not give you an advantage, so write it in detail.

Write in which platform the analysis will take place, and in which one – the trading, what additional settings are required. It is a good idea to read trading plan template capstone help, in order to be aware of if your plan is rendered successfully.

Stop loss

This is the thing that, even before entering a trade, will help you determine what potential trade has, as well as a stop loss keeps you trading in the long term. At the same time, the stop may be different for each instrument, depending on its volatility, so it is easier to install it as a percentage of your depot.

Management of risks

Perhaps the most important part of the plan. With the right risk management, you can toss up a coin and stay with your money.

It is necessary to prescribe how much you are willing to risk in each transaction, while you can make it dynamic, depending on how good the transaction is. It is also possible to come from your form – maybe you are now at the peak of your form and have the opportunity to earn a little more.

Way to manage open positions

Greed will always prevent you from closing a profitable position when it is clear that the trend has stopped. Fear and hope will prevent you from closing an unprofitable position.

In order for emotions not to interfere, you need to have a simple strategy to exit.

Keep a trade journal

An important point is also neglected. The magazine is a tool for training and analyzing your activities. Keeping a simple diary will allow you to avoid repeated mistakes, or vice versa will allow you to develop a new trading advantage.

It may seem strange, but the breaks are not less important than the intervals of activity. During the rest you relax, you charge with new forces. You can reflect on your trading and make your trading plan even better.

No one will give you guarantees that trade will bring you money. The chances of success depend on your skill, control system, discipline and much more. But as they say, you can lose the battle, but win the war. And to win the war, you need a good plan that will make you consistently successful and allow you to survive in the market.

Melissa Cartew is a writer, who enjoys writing on diverse topics. She has education in the realm of marketing and is highly aware of the trade. Her hobbies also include traveling, reading about promotions and psychology.


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