【 Summary 】 Develop a transaction plan

The difference between making money and losing money is as simple as having a trading plan and not having a trading plan. A trading plan is an organized and systematic approach executed according to a trading system, based on your market analysis and outlook observations, taking into account risk management and personal psychological factors.

No matter how good your trading plan is, if it is not executed, it will be ineffective.

Principled traders are those who can survive year after year. Their number of profitable trades may be less than the number of damaged trades, but they are still profitable because they adhere to principles.

Here are some important benefits:

Transactions with a trading plan are easier than those without a trading plan.

Reducing stress means a healthier body.

Can measure your performance, identify issues, and make corrections.

A trading plan can prevent many psychological issues from arising.

Strictly adhering to the trading plan can reduce the number of non-performing transactions.

A trading plan can prevent you from engaging in irrational behavior when you are emotionally agitated.

A trading plan helps you control the only thing you control - yourself!

The trading plan will set a bunch of principles for your trading. Gamblers lack principles and trading plans.

A trading plan allows you to trade within the range you are accustomed to. How many times have you suffered losses and lost profits because you felt comfortable? A plan, executed according to principles, will prevent such things from happening.

The trading plan is aGPSIt can help you go from where you are now to where you want to go: continuously making profits.

Your trading plan allows you to quickly identify problems when you make the wrong turn, giving you the opportunity to correct your mistakes before suffering losses.

The last thing you need to remember before learning the next lesson

Remember that trading plans are always ongoing.

The market environment changes, and trading plans also need to be changed. Regularly evaluate and modify your trading plan, especially when there are changes in your financial and living conditions. In addition, your research may affect your trading plan and trading methods, so make sure these changes are reflected in your trading plan.

"Survival of the fittest"

Remember, the main purpose of a trading plan is to keep you on track, operate efficiently, and make good trading decisions. No matter how good your plan is, as long as it cannot be put into practice, it is useless.