{"id":9898,"date":"2022-10-14T06:27:20","date_gmt":"2022-10-14T06:27:20","guid":{"rendered":"https:\/\/mdr.foobrdigital.com\/?p=9898"},"modified":"2022-10-14T06:27:20","modified_gmt":"2022-10-14T06:27:20","slug":"what-is-a-trading-plan","status":"publish","type":"post","link":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/2022\/10\/14\/what-is-a-trading-plan\/","title":{"rendered":"What is a Trading Plan?"},"content":{"rendered":"\n

Now that you\u2019re about halfway through our\u00a0College of Forex, here\u2019s one piece of advice you should always remember.<\/p>\n\n\n\n

Be your own trader.<\/strong><\/p>\n\n\n\n

In other words: Don\u2019t follow someone else\u2019s trading advice blindly!<\/strong><\/p>\n\n\n\n

Just because someone may be doing well with their method, it doesn\u2019t mean it will work for you.<\/p>\n\n\n\n

We\u2019re all in different situations in life, and we all have different market views, thought processes, risk tolerance levels, and market experiences.<\/p>\n\n\n\n

Have your own personalized trading plan<\/strong> and update it as you learn from the market.<\/p>\n\n\n\n

\"Forex<\/figure>\n\n\n\n

With rock solid discipline, your trading could look like this.<\/em><\/p>\n\n\n\n

Developing a Trading Plan and sticking to it are the two main ingredients of trading discipline<\/strong>.<\/p>\n\n\n\n

But\u00a0trading discipline\u00a0isn\u2019t enough. Even solid trading discipline isn\u2019t enough.<\/p>\n\n\n\n

It has to be rock solid<\/strong> discipline.<\/p>\n\n\n\n

We repeat: rock solid<\/strong>.<\/p>\n\n\n\n

Like a brick wall.<\/p>\n\n\n\n

\"Solid<\/figure>\n\n\n\n

\u201cCall me Mr. Discipline.\u201d<\/em><\/p>\n\n\n\n

Plastic solid discipline won\u2019t do. Nor will discipline made from straws and sticks. We don\u2019t want to be little piggies.<\/p>\n\n\n\n

We want to be successful traders!<\/p>\n\n\n\n

And having a brick solid trading discipline<\/strong> is the most important characteristic of successful traders.<\/p>\n\n\n\n

A\u00a0trading plan<\/strong>\u00a0defines what is supposed to be done, why, when, and how. It covers your trader personality, personal expectations,\u00a0risk management rules, and trading system(s).<\/p>\n\n\n\n

When followed, a trading plan will help limit trading mistakes and minimize your losses.<\/p>\n\n\n\n

After all, \u201cIf you fail to plan, then you\u2019ve already planned to fail.<\/strong>\u201d<\/p>\n\n\n\n

A trading plan removes any bad decision-making in the heat of the moment.<\/p>\n\n\n\n

Your emotions<\/strong> can consume you when money is on the line, causing you to make irrational decisions. You don\u2019t want that to happen.<\/p>\n\n\n\n

The best way to prevent it from happening is to minimize<\/em> (notice we did not say eliminate) thinking by having a plan for every potential market action.<\/p>\n\n\n\n

With the right trading plan, every action is spelled out, so that in the heat of the moment you don\u2019t have to make any rash decisions.<\/p>\n\n\n\n

You just simply stick to your trading plan.<\/p>\n\n\n\n

The Difference Between a Trading Plan and a Trading System<\/h2>\n\n\n\n

Before we continue, we have to quickly distinguish the difference between a trading plan and a trading system.<\/p>\n\n\n\n

  • A trading system<\/strong> describes how you will enter and exit trades.<\/li>
  • A trading system <\/strong>is PART of your trading plan<\/strong> but is just one of several important parts, i.e., analysis, executions, risk management, etc.<\/li><\/ul>\n\n\n\n

    Since market conditions are always changing, a good trader will usually have two or more trading systems<\/strong> in his or her trading plan.<\/p>\n\n\n\n

    Trading systems will be covered more in-depth later on in the lesson, but we thought that it was important to point out the difference between the two upfront to avoid any confusion.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Now that you\u2019re about halfway through our\u00a0College of Forex, here\u2019s one piece of advice you should always remember. Be your own trader. In other words: Don\u2019t follow someone else\u2019s trading advice blindly! Just because someone may be doing well with their method, it doesn\u2019t mean it will work for you. We\u2019re all in different situations in […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[765],"tags":[],"_links":{"self":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9898"}],"collection":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/comments?post=9898"}],"version-history":[{"count":0,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9898\/revisions"}],"wp:attachment":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/media?parent=9898"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/categories?post=9898"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/tags?post=9898"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}