Hello, friends! Let's talk about Trading plan today!
The basis of any action on the market is a well-designed trading plan (TP).
The basic rule is never trade without a plan, and when you have done TP, never break it.
Work without a plan leads to randomness and spontaneity of actions subject to emotions.๐ ๐ปโโ๏ธ
โโBefore opening a position, you must determined :โโ
๐position opening price ๐open position size ๐stop loss order ๐take profit order
๐๐ปThat's necessary in order to determine the possible risk / win ratio.
โญโญA trading plan should uniquely determine the actions of a trader in two scenarios:
1. Price moves opposite the open position
2. Price moves towards an open position
โA trading plan is drawn up before a position is opened, when a trader is in a balanced emotional state and can adequately think.
โ After opening a position, you should follow the trading plan very accurately and not allow yourself to make changes to it during the course of trading.
โ After closing the position, an analysis of the results is carried out, the optimality of actions is evaluated, and conclusions are drawn for the future.
โ Trading does not end when you close your position.
โYou must analyze it and learn from it.
โ After closing a position, many players forget about it and start looking for the next deal.
โกDon't miss the essential elements of the path to the level of a professional trader - analysis of the past and introspection.โก
Write down your trading plan. Write down the reasons for the exit and what you did right and what is wrong. You will receive a history of your transactions and thoughts in pictures. This journal will help you learn from past experiences and discover gaps in your thinking.
๐ช๐ปDon't forget about self-development!!!!๐ช๐ป
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