Summary: Develop your own trading plan
The difference between making money and losing money is as simple as having a trading plan and no trading plan. The trading plan is an organized and executed method according to the trading system. It is formulated based on your market analysis and prospect observation, and takes risk management and personal psychological factors into consideration.
No matter how good your trading plan is, it will be useless if it is not executed.
Principled traders are those who can survive year after year. Their number of profitable transactions may be less than the number of damaged transactions, but they are still profitable because they adhere to the principle.
Trading System—Summary of Developing a Trading Plan-Yuhui International
Here are some important benefits:
Trading with a trading plan is easier than trading without a trading plan.
Reduced stress means better health.
You can measure your performance, find problems, and correct them.
The trading plan can prevent many psychological problems.
Strict compliance with the trading plan can reduce the number of bad transactions.
A trading plan can prevent you from making irrational behavior when you are emotional.
The trading plan helps you control the only thing under your control-yourself!
The trading plan will set a lot of principles for your trading. Gamblers lack principles and trading plans.
The trading plan allows you to trade within the scope of your own adaptation. How many times have you suffered losses and your profits have shrunk because you feel comfortable? A plan, carried out according to principles, will prevent this from happening.
The trading plan is a GPS that allows you to go from where you are now to where you want to go: continuous profit.
Your trading plan allows you to quickly discover problems when you “turn the wrong turn”, so that you have the opportunity to correct your mistakes before you suffer losses.
The last thing to remember before you study the next lesson…
Remember that the transaction plan is always in progress.
The market environment changes, and the transaction plan also needs to be changed. Evaluate and revise your trading plan regularly, especially when your financial and living conditions change. In addition, your research may affect your trading plan and trading methods. Let these changes show up 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.