What is Trading Plane ?

[ethereumhunter]

You can read what is trading plan here: https://www.investopedia.com/terms/t/trading-plan.asp

What Is a Trading Plan?
A trading plan is a systematic method for identifying and trading securities that takes into consideration a number of variables including time, risk and the investor’s objectives. A trading plan outlines how a trader will find and execute trades, including under what conditions they will buy and sell securities, how large of a position they will take, how they will manage positions while in them, what securities can be traded, and other rules for when to trade and when not to.

From that article, you need to learn how to find and execute trades and know when you should enter the market. There are many more you need to learn to have a trading plan, including learning about analyzing the market movements to know when you need to execute your trade, how much money you use to trade, etc.

and what we have to learn besides the time to enter and exit the market, we must also be able to anticipate if the analysis does not go according to plan, because it is important so that our capital remains safe, cuts losses and can look for opportunities to return to the next market movement

But you do not have to enter the market if you are not sure about the condition because you put yourself in danger. With a trading plan, you will know what you need to do related to the market situation, not risk your money and prevent the loss. Even if you lose, you will know when you should use the stop loss feature not to get a big loss.

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[so98nn]

If you ask me then in my opinion in crypto currencies too volatile to make an exclusive plan trading. There obviously few of the coins for example, BTC, ETH, BNB who are very promising. You can hold them for the long term trading positions. While on the other hand there are hundreds of altcoin who may or may not turn out as per your expectations. You can't just plan for them because it's high risk based plan. In real world, buying a share for xyz company can be pre-planned based on the facts like companies position in the world, it's employee, products, popularity, government relationships and much more. It can give you clear vision of the company and thus value for the share of company.

This is not that is in case of Crypto. I would suggest holding short term positions if you wanna make any plan to hodl, day trade and stake etc.

[wiss19]

Learning the technical and fundamental analysis could be separated from trading plans but how you make use of the signals you get from your analysis and how many positions and how much risk levels kind of things need to be decided before entering into live market and following them is "trading plan".

Yeah, there should be different phases of trading plans:
pre-plan -- the preparation phase for getting ready to trading.
actual plan -- how you are going to execute in live markets with the help of what you learned in pre-plan phase.

Mostly what we do dream about profit making in pre-plans may not get full filled in live markets as market fluctuations are beyond our imaginations and also TA and FA are not as effective as we do expect. So, trading plans are just a roadmap on how you are doing to perform but the results from your trading may vary and depend on your skills and experiences.

[jaberwock]

pre-plan -- the preparation phase for getting ready to trading.
actual plan -- how you are going to execute in live markets with the help of what you learned in pre-plan phase.

Do you have any reference links for this? I mean it would be helpful if you share the information on from where you found these things so that I could learn more on this. I agree that trading plans must be consisting of different phases and the final one should be on how we encounter with live markets and all other plans should be the preparation phase for live markets.

trading plans are just a roadmap on how you are doing to perform but the results from your trading may vary and depend on your skills and experiences.

Yeah, plans never guarantee you any profits but may help you to prevent frustrating moments. Because, with the help of pre-determined things you can take right decisions even under pressure of market. Most traders do panic out of market pressure and start obeying to their emotions.

[awik p]

Learning the technical and fundamental analysis could be separated from trading plans but how you make use of the signals you get from your analysis and how many positions and how much risk levels kind of things need to be decided before entering into live market and following them is "trading plan".

Yeah, there should be different phases of trading plans:
pre-plan -- the preparation phase for getting ready to trading.
actual plan -- how you are going to execute in live markets with the help of what you learned in pre-plan phase.

Mostly what we do dream about profit making in pre-plans may not get full filled in live markets as market fluctuations are beyond our imaginations and also TA and FA are not as effective as we do expect. So, trading plans are just a roadmap on how you are doing to perform but the results from your trading may vary and depend on your skills and experiences.

right, with the same plan it will not necessarily produce the same amount of profit, this depends on each trader's vision and intuition. therefore it is important to be confident in what we see, so that we do not regret the actions we have taken. especially with experience, we seem to automatically have feelings for the market, with the behavior of the candle that is formed

[Zilon]

Creating a trade plan is when you trade what you see based on a detailed analysis from your technical or fundamental analysis. For technical traders it's beautiful to have at least three confirmation before taking up a trade. Always avoid trading a single confirmation pattern because it only gets you stuck in a trade.

To draft out a plan you have to know how to interpret what your chat is presenting before you by:

• Define the trend(market structure)

You should know the direction of the market if it's moving up, down or sideways by using
Trend lines
Moving averages

• Then you should have an Area of value

You should know a point where the market retests a major zone by using
Support and resistance
Trend lines

• Lastly have an area of Value

This majorly your candle stick confirmation which could be reversal or continuation candles
[/list]

Always ensure you trade what you see.

[barbara44]

with the same plan it will not necessarily produce the same amount of profit, this depends on each trader's vision and intuition. therefore it is important to be confident in what we see, so that we do not regret the actions we have taken. especially with experience, we seem to automatically have feelings for the market, with the behavior of the candle that is formed

That is the hardest thing about trading, you can have one exact plan and give it to 100 different people and that same exact thing will not have the same impact on the people exactly the same, all those 100 will have a different result.

This is why I think it is obvious that we should not look for the perfect plan in some other persons teachings, because there won't be any that is perfect for us, only the people who think that we should do what works for them and just because it works for them doesn't mean it will work for us as well.

It is a hard concept and I understand that many people have difficult time making their own and that is why they are working with other people to build their own, that makes sense if you have no idea how to do it yourself and if you test out enough examples eventually one of them may work for you as well, but it is going to be costly to do that.

[dezoel]

with the same plan it will not necessarily produce the same amount of profit, this depends on each trader's vision and intuition. therefore it is important to be confident in what we see, so that we do not regret the actions we have taken. especially with experience, we seem to automatically have feelings for the market, with the behavior of the candle that is formed

That is the hardest thing about trading, you can have one exact plan and give it to 100 different people and that same exact thing will not have the same impact on the people exactly the same, all those 100 will have a different result.

That's true and it happens because everyone has their own ability to take risks and even when 100 people walk down the same path, some will reach their destination faster than others and some would even fail to reach it at all.

There cannot be a specific trading strategy that works for anyone unless it includes some kind of trick that usually doesn't last for long. Trading can be considered as life. You make mistakes and learn from them to improve your actions next time under the same circumstances. One who learns faster and possibly looks at others to learn will be more successful.

There are basics about trading you can and should learn from videos and online articles but the true trading knowledge will only come after you make mistakes.

[FIFA worldcup]

You can read what is trading plan here: https://www.investopedia.com/terms/t/trading-plan.asp

What Is a Trading Plan?
A trading plan is a systematic method for identifying and trading securities that takes into consideration a number of variables including time, risk and the investor’s objectives. A trading plan outlines how a trader will find and execute trades, including under what conditions they will buy and sell securities, how large of a position they will take, how they will manage positions while in them, what securities can be traded, and other rules for when to trade and when not to.

From that article, you need to learn how to find and execute trades and know when you should enter the market. There are many more you need to learn to have a trading plan, including learning about analyzing the market movements to know when you need to execute your trade, how much money you use to trade, etc.

and what we have to learn besides the time to enter and exit the market, we must also be able to anticipate if the analysis does not go according to plan, because it is important so that our capital remains safe, cuts losses and can look for opportunities to return to the next market movement

Everyone comes with a trading plan but most of fail to execute it. We all know that we have to  buy from support, don't rush into trades and always use stop loss, but when it comes to the actual trading then most of the traders do not follow these rules and take emotional trades which usually result in the loss.

The first basic plan for every new trader is to trade in spot but most of the newbies go straight for future trading because they see more scope of making money in future trading.

[Desmong]

Trading plan is a way to ensure safe funds without risking too much or too small. It is a set of rule that guide one from trading and making decisions about the market. This rules are set by an individual to guide through risks, stop lose, take profit and patterns use in trading. A lot of new traders are not always conscious about their plans which contains all rules guiding individual trade.

[andriarto]

You can read what is trading plan here: https://www.investopedia.com/terms/t/trading-plan.asp

What Is a Trading Plan?
A trading plan is a systematic method for identifying and trading securities that takes into consideration a number of variables including time, risk and the investor’s objectives. A trading plan outlines how a trader will find and execute trades, including under what conditions they will buy and sell securities, how large of a position they will take, how they will manage positions while in them, what securities can be traded, and other rules for when to trade and when not to.

From that article, you need to learn how to find and execute trades and know when you should enter the market. There are many more you need to learn to have a trading plan, including learning about analyzing the market movements to know when you need to execute your trade, how much money you use to trade, etc.

and what we have to learn besides the time to enter and exit the market, we must also be able to anticipate if the analysis does not go according to plan, because it is important so that our capital remains safe, cuts losses and can look for opportunities to return to the next market movement

Everyone comes with a trading plan but most of fail to execute it. We all know that we have to  buy from support, don't rush into trades and always use stop loss, but when it comes to the actual trading then most of the traders do not follow these rules and take emotional trades which usually result in the loss.

The first basic plan for every new trader is to trade in spot but most of the newbies go straight for future trading because they see more scope of making money in future trading.

Indeed, in trading the most difficult thing to manage is emotional, even though we already have a plan that has been prepared in advance, sometimes we are not disciplined, thus violating the plan. for me the most important thing is that we must learn to be consistent with the initial plan, so that we can evaluate our trading progress

[Shasha80]

~

and what we have to learn besides the time to enter and exit the market, we must also be able to anticipate if the analysis does not go according to plan, because it is important so that our capital remains safe, cuts losses and can look for opportunities to return to the next market movement

Everyone comes with a trading plan but most of fail to execute it. We all know that we have to  buy from support, don't rush into trades and always use stop loss, but when it comes to the actual trading then most of the traders do not follow these rules and take emotional trades which usually result in the loss.

The first basic plan for every new trader is to trade in spot but most of the newbies go straight for future trading because they see more scope of making money in future trading.

Indeed, in trading the most difficult thing to manage is emotional, even though we already have a plan that has been prepared in advance, sometimes we are not disciplined, thus violating the plan. for me the most important thing is that we must learn to be consistent with the initial plan, so that we can evaluate our trading progress

I think it is very natural for us to make mistakes when trading, because sometimes there are situations where we are influenced and get out of
the original plan. It is not easy to maintain our emotions when trading, therefore to succeed in trading requires a long process. We have to learn
many things to understand how to make a good plan to be able to make profit from trading, so the most important thing is never to give up when
we fail in trading. Keep on trying fixing the mistakes we made, I believe in the end people who want to learn from their mistakes will be able to
make a successful trading plan.

[tygeade]

Trading plan is a way to ensure safe funds without risking too much or too small. It is a set of rule that guide one from trading and making decisions about the market. This rules are set by an individual to guide through risks, stop lose, take profit and patterns use in trading. A lot of new traders are not always conscious about their plans which contains all rules guiding individual trade.

A trading plan is a must for everyone and you're right most of the new traders are not conscious and aware enough to make a rigid plan and stick to it. Being a trader is as serious as maintaining a business hence one must have a well defined plan and the mentality to stick with it even when the market is unfavorable.

There could be a lot of things you should include when making a trading plan but some of the crucial things are:

1- Time & Capital management
2- Recovery planning along with alternative plans
3- Tools required for trading and the knowledge to use them

[Ziskinberg]

A trading plan is a must for everyone and you're right most of the new traders are not conscious and aware enough to make a rigid plan and stick to it. Being a trader is as serious as maintaining a business hence one must have a well defined plan and the mentality to stick with it even when the market is unfavorable.

There could be a lot of things you should include when making a trading plan but some of the crucial things are:

1- Time & Capital management
2- Recovery planning along with alternative plans
3- Tools required for trading and the knowledge to use them

Well, that obvious to see many traders keep on losing because they just underestimate trading and don't have a plan. But of course, it is not just having a plan we can say that we become successful, it needs a proper execution and stick to the plan. if that we fail to follow the process, that pretty sure we know what will be the possible ends and that still a losing ends.

PLAN + EXECUTION + CAPITAL = PROFIT

We all have a different style in trading and as well as strategies that is why we also have different results.

[TheGreatPython]

pre-plan -- the preparation phase for getting ready to trading.
actual plan -- how you are going to execute in live markets with the help of what you learned in pre-plan phase.

Do you have any reference links for this? I mean it would be helpful if you share the information on from where you found these things so that I could learn more on this. I agree that trading plans must be consisting of different phases and the final one should be on how we encounter with live markets and all other plans should be the preparation phase for live markets.

I think the difference between pre-planning and actual planning is that while you are pre-planning, you may consider a lot of points since you are looking at all the viable options and during the actual planning phase, you can cut out the options which are either not realistic or are risky enough to be avoided. It's like preparing a plan for a trip, you mark many destinations but when you actually visit, you cut out some of them to save time and money.

No plans and planning can ensure profits neither any plan can be foolproof such that there is no chance for loss, there will always be a possibility of loss but planning is done to reduce the amount of risk and maximize the profits. For someone who is trading in free time or as a secondary task to make extra income, I think they don't need all the planning.

[pragna]

You can only create trading plan if you already have enough knowledge about the market.
I can give you a simple plan for you to start your trading journey.

1. Collect information about trading, read books, watch youtube tutorial or attend trading seminar online.
2. Set your timeline, learn for at least 3 months or more depends on your skills to adopt such information.
3. Do some actual trading using a platform that enables you to practice trading.
4. Set up now your capital, and apply all the learning that you get.
5. Control your emotion, have a great mindset in trading.
6. Keep on Learning until you master Trading.


Its not easy to have a trading plan, you have to fully commit yourself and spend more time on learnings.
Don't rush making money in trading, this market is too risky for a greedy.

I think this is very good information for new traders and investors in this market but at the same time practical experience is very important also to proceed forwarded. Anybody wants to build career in this platform need more and more experience and that can start with small investment or gather knowledge from experience person. I think he will be gainer.

[breathlessz]

Trading plan is a way to ensure safe funds without risking too much or too small. It is a set of rule that guide one from trading and making decisions about the market. This rules are set by an individual to guide through risks, stop lose, take profit and patterns use in trading. A lot of new traders are not always conscious about their plans which contains all rules guiding individual trade.

A trading plan is a must for everyone and you're right most of the new traders are not conscious and aware enough to make a rigid plan and stick to it. Being a trader is as serious as maintaining a business hence one must have a well defined plan and the mentality to stick with it even when the market is unfavorable.

There could be a lot of things you should include when making a trading plan but some of the crucial things are:

1- Time & Capital management
2- Recovery planning along with alternative plans
3- Tools required for trading and the knowledge to use them

I think being disciplined about the trading plan that has been prepared in advance is also an important step, because many of us violate the plans that have been made, and end up regretting ourselves. Besides that, it is true that indicators are not always correct in giving signals, therefore we must understand how to use them

[Smartvirus]

Well, trading plan could mean different things to different people but in all, they all perform one single function which entails, getting you off the path to loses. Yeah, that's basically what a trading plan does and as such, its a guide that helps you keep track of your trading and determine when a trade is considered okay or when its actually going against you and you need to get out. So, a trading plan is morenlike a guide of your own making as its all about your satisfaction.

To draft a trading plan, you ought to have some personal experience most of all with the market. You must have traded the market for sometime and found out what actually works with you, estimate how much ROI or lose that you can endure in a day, week or month and be okay with or not be affected. Hence, you build a pattern about that point, together with your strategy of trading the market and you just might have a trading plan.

[Yatsan]

Trading plan may vary depending on the person because each and everyone of us have different things to consider to come up into a plan with regards to our trading which mostly concerns financial aspects since management of your budget is the top most priority upon doing trading because your aim is not just to earn profit but also to survive with the rude market of crypto wherein there is a greater chance of losses than gains. Trading plan may differ depending on how you wish to execute your strategy to come up into a desirable result that you have simulated via technical analysis or by just your logical assessment alone.

[gabbie2010]

Trading plan is having it in mind that you are wanna start trading to have profitable returns not gamble..
For a successful plan. You need to start with a demo account first and from there, you will know if you are good to go

After a trading strategy comes in a trading plan whenever a trade is going to be executed it has to follow a trading plan laid out by the trader.
1. Where to place a stop loss and take profit

2. Trail a profitable trade to earn a good return

3. Risk managing a trade according to the plan

4. Existing a trading whether it is at loss or in profit

5. Money management is also very important

Those points are to be considered in a trading plan this becomes necessary to avoid trading blindly which might culminate to massive loss all these has to be formulated by the individual traders.