WHY DO WE NEED A TRADING PLAN ?

[liamclark]

- Having knowledge but not complying with the trading plan can NEVER be profitable.
- Why need a plan?

* Reason 1: consistency is very important in trading, as it honestly evaluates the success level of a trader. The trading plan will help us stay consistent with the goal. Read it every day and adhere to it.

* Reason 2: this is business and so business success must ALWAYS be planned.

- What does the trading plan need?

1. A trading system: the heart of the plan, must be thoroughly tested with past data (back test).
* Include the necessary information: time frame, conditions for opening and closing transactions, level of risk per transaction.

2. Transaction procedure: the core part of the plan
• When will you analyze the market, evaluate the transactions ?
• When will you actually monitor the market to carry out transactions ?
• When will you evaluate transactions in the day?

3. Your thoughts: The hardest part is leaving your emotions out of the transactions.
• Just look at THE CHART SHOWING WHAT, NOT WHAT I WANT TO SEE.
• DO NOT TRY TO TAKE BACK, FORGET THE LOSS TRANSACTIONS.
• DO NOT LOSE YOURSELF, TAKE LESSONS FROM A LOSS.

4. The shortcomings of the self: concealed weaknesses, do not like talking about it. This section will follow objectively to track yourself. For example:
• We tend to close transactions soon.
• Does not comply with the trading system principles.
• Does not comply with the money management principle.

5. Personal goals: make money, discipline training, mental training, training self confidence. The goal is to help us through difficult times.

6. Record your transaction : record the transaction and why you open the transaction.

The best way to execute a trading plan is when you are not in the trade. Build yourself a trading plan that will guide you in the market, and this is actually the most effective way to actively remove the loss transactions due to emotion.

[Salauddin1994]

Half of the work done by the planer, if we measure the plan before doing any work, then that work will not lead us to 50% success. The rest of the effort and fate. Forex market also means that if you trade properly before you open the trade, then 50% of your losers will not be the first. The rest will depend on your technical skills and fate. And if you dry the trade without the plan, the probability of the losers is 80% and the rest is a matter of luck. 80 percent of the forex traders may start trading with haste and emotions and 80 percent of them are lost.

[amskdkd]

Build yourself a trading plan that will guide you in the market, and this is actually the most effective way to actively remove the loss transactions due to emotion. 

[wayancrypto]

Yes we should be have trading plan before doing trading activity, this trading plan to know the level risk in trading and how to minimize it. Trading activity without trading plan will be the same like gambling, and doing gambling will never promising consistently profit. Purpose of trading is to get profit monthly, so we should be have trading plan.

[Moiyah]

This will work most of the time. Setting a goal in trading will motivate you to reach that certain plan. It is really significant to  make a plan lists as well as sticking to the plan such as reminding yourself not to be greedy, set aside emotions and go on even if you have a loss.

[karungbitcoin]

Trading without any trading plan will ve the same thing we jump in to gambling, because trading plan possible to minimize the risk and to maximum the profit. No one trader possible to make profit by consistenly without any trading plan.

[Strongkored]

What you mentioned can be said to be true, but the most difficult thing is to do what has been planned, and point number 3 is a pretty difficult thing for me to do because losing is greatly affects us mentally.

[Herbert2020]

What you mentioned can be said to be true, but the most difficult thing is to do what has been planned, and point number 3 is a pretty difficult thing for me to do because losing is greatly affects us mentally.

that is why it is said that trading is not something the everyone should try. and it is why there are a lot of losers in trading because it is not suitable for them but they don't want to accept it and continue trying to make it work and fail.
although you may not belong to that category, being affected by emotions is fine for beginners but as long as you are aware that this is something that you should get rid of and start being more of a solid logical trader instead.

[cryptocointrade.com]

- Having knowledge but not complying with the trading plan can NEVER be profitable.
- Why need a plan?

* Reason 1: consistency is very important in trading, as it honestly evaluates the success level of a trader. The trading plan will help us stay consistent with the goal. Read it every day and adhere to it.

* Reason 2: this is business and so business success must ALWAYS be planned.

- What does the trading plan need?

1. A trading system: the heart of the plan, must be thoroughly tested with past data (back test).
* Include the necessary information: time frame, conditions for opening and closing transactions, level of risk per transaction.

2. Transaction procedure: the core part of the plan
• When will you analyze the market, evaluate the transactions ?
• When will you actually monitor the market to carry out transactions ?
• When will you evaluate transactions in the day?

3. Your thoughts: The hardest part is leaving your emotions out of the transactions.
• Just look at THE CHART SHOWING WHAT, NOT WHAT I WANT TO SEE.
• DO NOT TRY TO TAKE BACK, FORGET THE LOSS TRANSACTIONS.
• DO NOT LOSE YOURSELF, TAKE LESSONS FROM A LOSS.

4. The shortcomings of the self: concealed weaknesses, do not like talking about it. This section will follow objectively to track yourself. For example:
• We tend to close transactions soon.
• Does not comply with the trading system principles.
• Does not comply with the money management principle.

5. Personal goals: make money, discipline training, mental training, training self confidence. The goal is to help us through difficult times.

6. Record your transaction : record the transaction and why you open the transaction.

The best way to execute a trading plan is when you are not in the trade. Build yourself a trading plan that will guide you in the market, and this is actually the most effective way to actively remove the loss transactions due to emotion.

It's not a bad strategy.

I would put more focus on "TAKE LESSONS FROM A LOSS." though.

Analyze what was your mistake in the loss. Was only a 1-time loss or did you have 3 losses in a row? Was it because of emotions, a miscalculation, bad analysis or maybe weaknesses in the trading plan?

You must improve all the time. Even if you are a profitable trader you must improve all the time because your competition (The market) will improve all the time.

HAPPY TRADING

[Idrisu]

Thank you for sharing this with us and I think we should have to value our plan more than to place order.  In trading most of the price movement do takes us unaware and if you have trading before you will understand how trading plan is much important than any things in trading.

[Sifon]

This is very insightful and appreciated. Many a times we jump into trades without having a clear cut plan on how long to be in the market, the amount of profits targeted on the trade, the amount of losses we're willing to take. Also, chasing trades makes people not to plan. It's therefore very vital to have a plan before even entering the market like you said

[Aivaryamal]

In any case, you need to set certain goals, otherwise you will be lost when you fix a profit, you need to periodically review your portfolio and add other assets

[amd6678]

if traders trade with trading plan then its trading , without trading plan if traders trade its gambling ,

although we prepare for trading but at the time of implementation we need a perfect plan then only we can mange our risk and trading also

[enwi]

yes of course we have to make a good plan before trading and maybe that can be called a strategy, with a strategy we will have the opportunity to be able to get profit and reduce risk, without a good strategy it will be very risky

[Kocret02]

we still need trade plans, because the trading system is not like gambling that is just waiting for victory. we can still determine our plans, need analysis and this needs to be done all the time before starting the trade. this depends on the profit that we get, so when we are less mature determine a plan then big profits will not be easy to get.

[nicster551]

- Having knowledge but not complying with the trading plan can NEVER be profitable.
- Why need a plan?

* Reason 1: consistency is very important in trading, as it honestly evaluates the success level of a trader. The trading plan will help us stay consistent with the goal. Read it every day and adhere to it.

* Reason 2: this is business and so business success must ALWAYS be planned.

- What does the trading plan need?

1. A trading system: the heart of the plan, must be thoroughly tested with past data (back test).
* Include the necessary information: time frame, conditions for opening and closing transactions, level of risk per transaction.

2. Transaction procedure: the core part of the plan
• When will you analyze the market, evaluate the transactions ?
• When will you actually monitor the market to carry out transactions ?
• When will you evaluate transactions in the day?

3. Your thoughts: The hardest part is leaving your emotions out of the transactions.
• Just look at THE CHART SHOWING WHAT, NOT WHAT I WANT TO SEE.
• DO NOT TRY TO TAKE BACK, FORGET THE LOSS TRANSACTIONS.
• DO NOT LOSE YOURSELF, TAKE LESSONS FROM A LOSS.

4. The shortcomings of the self: concealed weaknesses, do not like talking about it. This section will follow objectively to track yourself. For example:
• We tend to close transactions soon.
• Does not comply with the trading system principles.
• Does not comply with the money management principle.

5. Personal goals: make money, discipline training, mental training, training self confidence. The goal is to help us through difficult times.

6. Record your transaction : record the transaction and why you open the transaction.

The best way to execute a trading plan is when you are not in the trade. Build yourself a trading plan that will guide you in the market, and this is actually the most effective way to actively remove the loss transactions due to emotion.

This is perfect for someone who is serious enough to mind trading and their own business and also for someone that is a professional trader.

[1Referee]

if traders trade with trading plan then its trading , without trading plan if traders trade its gambling ,

You only need a basic level of market understanding, the rest is not important.

Most of the traders don't care about what coin they trade, they just look for the momentum and hop to another coin as soon as that momentum is about to fade. BCash is going through some serious momentum as we speak, which as you can see, that's where traders are trying to get the best out of that opportunity till the hard fork takes place and they short the crap out of it as goodbye kiss.

The problem people often face is that they try to dig up all sorts of data about the project itself, and who the people behind it are, which is definitely important for long term investment puproses, but the short term market doesn't mirror the utility and usefulness of a project, just the speculative side.

[proTECH77]

We all need a trading plan to enable profit maximization.
Without the right deployment of trading plans looses are inevitable.
Kudos to the OP for the strategy placed for beginners like us.

[emberbekas]

I am indeed agree! without a plan, we certainly will not have direction and purpose. Our activities will be controlled by our emotions which will certainly have a negative impact on our business including in trading. Without a plan, we are like a man who walks aimlessly.

[asyakashi]

I don't need a detailed plan in cryptocurrency trading, the market situation moves very fast and is not easy to predict.
sometimes plans are made very fast because the market faces a big issue. Trade is an instinct and a combination of skills and experience.
A trader's plan is an advantage.