Whenever we want to engage in trading, it is fundamental and fundamental to make a good plan, to perform well. Plan, define, and specify the objectives and guidelines of your daily strategy. This is your personal work plan, adapted to your needs. You must create it yourself, but most importantly, follow it and respect it. Our plan cannot rely on chance in such a volatile market. Plan De Trading
A list is created in which you evaluate point by point in a sequential manner all the aspects of your trading operation, and if any of the points are not met, you should let the operation pass.
An explanation of why trading plans are important
Before you start trading on a real account, you should practice trading on a demo account (you can read our post about the best trading platforms here). You can test your plan in the demo account as many times as necessary, and in this way see if it is detailed enough, and, above all, if it is reliable or not. The simpler and easier the better, the less complicated and the longer the better. Be realistic and honest, of course. Plan De Trading
After you start earning money, you can move on to a live account. It’s important to remember that there is no perfect plan with which you can win in every situation.
Your trading plan should include the following elements
As we have seen, the plan is personalized, therefore, the elements may vary according to each trader, however, there are a few basic ones that you should include in your plan. Estos son:
As a trader, you are:
In addition to training and experience, identify the markets that best suit your needs, how much time you can spend trading, what your motivations are, and what your mentality will be when trading, especially your attitude toward risk. You will avoid making rash decisions by maintaining an objective, cool-headed and prudent mindset. Plan De Trading
Objectives:
Determines where you want to go and what you want to accomplish. Details of the route or steps can be found here. It is better to be more specific and concrete. What is your current location? Do you have sufficient capital? Will I trade short or long? Do you do it daily, weekly, or monthly?
Operations:
Describes all the steps to follow in your day-to-day trading routine in this section. Are you going to be operating in which markets, which operations are you most interested in, what is your availability to operate, how often will you review the information and graphs, what time?
Methods and Registration: Plan De Trading
Record your daily operations and use that data to analyze and monitor them. Develop a methodology that works for you. As a result, you can assess what has worked for you and what has not, giving you a better perspective on your business. Don’t forget to consider market trends, support and resistance, confluence factors, etc.
Money control: this section is vital.
It is essential to read this section. Plan and manage your investments, especially risk management. When setting your StopLoss and TakeProfit, profit/loss, etc., you must consider factors such as the size of your trade. We recommend assuming small additional amounts if your plan proves successful, to avoid larger losses.
Remember to create an effective strategy in your plan, to follow your routine with perseverance, discipline and organization, to avoid impulsiveness and act without rushing, be patient, and to launch a real account only when you feel prepared and confident. While following a trading plan is work, it will become your right hand as a trader.
Long-term trading plans
This can be compared to an individual who invests a certain amount of money each month into a collective investment plan. Consider putting a lot of emphasis on:
While they still have a trading plan, it may not be as detailed as a day trader’s. A performance analysis of the fund is ongoing, however, and conditions must be met. It may be necessary to make changes if, for example, the collective investment underperforms its peers for two consecutive quarters.
Specifically, we have analyzed stocks and trading plans that are considered to be at opposite ends of the spectrum. Most likely, your custom trading plan will fall somewhere in the middle.
Building a Successful Trading Plan: A Step-by-Step Guide
Various concepts and conditions that may be relevant to your trading plan have been briefly discussed. There is always a degree of flexibility and nothing is set in stone. That said, we will now take a step-by-step approach to creating your own trading plan.