A good trader makes a plan and then clearly executes everything written in it. Many successful traders use zignaly. This approach allows you to identify bottlenecks in your actions and eliminate them. With constant self-control, skill increases, which makes trading more profitable. If the trader does not act systematically, relying on intuition, it is more difficult to identify his erroneous actions.
The plan prescribes how the trader will act in certain trading conditions in advance. Since you have to risk real money when trading, emotions interfere in the decision-making process. It does not positively affect the financial result, and clear rules allow you to neutralize this factor.
How to create a trading plan
Let’s consider what factors help to make a plan
Object of trade
These can be stocks, bonds, futures, options, currency pairs. It is better to decide on specific assets immediately. For example, you decide for yourself to trade Amazon or Apple shares.
Time
For example, the most active trading on Amazon shares takes place in the morning and before the exchange’s closing. For example, movements in the price of oil occur with the opening of the American trading session. You will need to trade. The choice of the timeframe will depend on your activity. If you make many transactions within a day, stop the option on minute, five-minute, fifteen-minute charts. If it focuses you on long-term trading, daily and weekly charts are suitable for you.
Risk limit
The risk is set on the transaction and the trading day. Usually, the bet per transaction is no over 1%. With this approach, you need to make many unsuccessful trades in a row to lose money. If you decide to open several positions simultaneously, they should be mutually exclusive. Otherwise, all transactions will show a minus if the decision to enter was incorrect.
Your psychological state is not suitable for trading someday, but you do not feel it. Therefore, having received several unprofitable trades in a row, you need to stop. For this purpose, it introduced the risk for the day.
Criteria for entering the transaction
Having clear criteria, you will no longer doubt whether or not to make a deal. Emotions fade into the background, the system works. You need to choose the signals to enter and decide whether you will work out. All the signs or only those that appear at inevitable volatility or follow only the trend. Select the type of order you will use to enter: market or pending.
Exit conditions from the position
It is necessary to decide on a profitable exit and fix the loss. Setting a loss depends on the risk of the transaction, and selecting a profit may depend on many factors. For example, you exit when the factors that prompted you to enter a trade disappear, or it achieved the target profit based on technical analysis.
A step-by-step guide to successful trading plans
Everyone who wants to become successful must follow the following criteria
Force majeure cases
The trader should have specific measures to be taken if the Internet, electricity, or computer breaks down. The laptop must have a charged battery in case of such unforeseen circumstances. You must install a trading terminal in advance on a smartphone or tablet, a 3G modem, a VPS server, contact details of friends who will always help.
Profit and loss control
It is necessary to prescribe a plan of action because of a series of losing or profitable transactions. Everything depends on the risks and style of the trader. Here are some examples.
Difficult tactics
If a trader uses several strategies, it should be recorded in writing in which place and when they are involved.
- Example #1: If there was a pronounced trend movement in the market, you need to apply one strategy. And if there was a flat on Forex, then a completely different approach.
- Example #2: At the entry stage, I use an Expert Advisor, then it turns off, after which I use my tactics.
Long-term and short-term goals
It is essential not to forget about the set goals. Everyone has their own. You can strive to earn a deposit of +30% per day, but if you set a goal of + 10% per month, it will not seem unattainable.
Its feature
For example, it can be to enter the market to buy or sell, place stop orders, close the terminal, and then look into it only in the evening.
Final Thoughts
Every trader needs a winning plan for a day, a week, and even a month. Please keep it in electronic format and print it on a piece of paper, and put it in front of your eyes. Besides the fact that it needs to be compiled, you should also carry out a winning plan.
Having worked out all these steps and fixed them on paper, you trade, strictly observing all the rules. Then you analyze what led to profit and what led to a loss. Based on the analysis, you adjust the system parameters. And you trade again. So gradually, you will come to the most optimal plan that best suits you.
