PLAN your trade and TRADE your plan - Page 244
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Thread: PLAN your trade and TRADE your plan

  1. #2431
    Each trader should have detailed trading plan. "Failing to have a plan is a plan to fail" - the professionals say. Properly developed trading plan should cover all steps of trading process from choosing the entry point to closing the positions. As usual, trading plan includes the following elements:
    - requirements on time of the day and trading session,
    - criteria used to choose the particular instruments to trade,
    - setups you are looking for and entry point,
    - risk management rules, including the way to calculcate the position size and to define stop level,
    - position management rules, covering such issues as adding more on pullbacks or covering the position partially,
    - reasons to exit trade with profit (based on technical setups and profit potential).

    In fact all this is not so complicated as might seems from the first sight. All elements of the trading plan should be based on strategy rules. At the same time, strategy rules should be created in accordance with backtesting results. Testing strategy on historical ata is important to define proper values for each element - for example, to find an optimal stop width or profit potential. Nowadays it is quite easy with the help of special software like Forex Tester that allows to make dozens of simulated trades just in a few minutes. Backtesting is the best approach to get detailed information in the performance of the strategy. Such results would be more accurate than ones obtained through demo testing since backtesting is fully automated and thus it totally excludes the impact of trader`s psychology.

    It is also necessary to mention that trading plan should be prepared before entenring the position to avoid the influence of fear or greed appearing while being in the position. It happens because trader becomes biased if he has position in either direction and unintentionally tryies to find arguments confirming that his optinion is still valid.

  2. #2432
    Trading with emotional involvement will always get in the way of trading one's trading plan. Because when you trade with emotion you will most likely be aggressive and sentimental towards the market and this are traps that once a trader fall into, losing your entire trading account is just a step away. So its best to shun emotions and focus on trading once plan.Most of the time we trade the market with a lot of emotional feelings and never rely upon any trading plan and this is one of the reason we often lose money to the market because we never plan very well . it takes a lot of discipline for any trader to have a trading plan and to trade such plan without allowing our emotion to stand in the way of our plan.

  3. #2433
    The strategy shows good but my brother's simplicity is better and the kalaski analysis based on support and resistance is the best way to choose a 4-hour time frame you choose a summit to sell and wait for access to the supposed support important that the margin bears any reflection and the lot is compatible with the balance.
    it is the best and easiest way to sell at the top and buy when support

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