Most traders know the importance of trading plans to our entire trading operations, and will try to make a trading plan to assist their trading. However, due to various factors, the trading plans made by most people are not satisfactory. Even if they are tailored to their own circumstances, they still cannot stick to them. Today, let’s discuss with you how to make a trading plan that suits you?

During non-trading hours

Since it is a plan, it must be made during non-trading hours and then implemented during trading hours. Because you have more time during this period, you can spend more time reviewing and analyzing market trends, which can avoid some emotional fluctuations.

If you make a trade during the trading hours, there will be two problems. First, you will be affected by the previous trades and your emotions will interfere with your judgment. Second, the market changes rapidly. You made a bearish plan in the last second, but the market rises rapidly in the next second. Your plan cannot keep up with the changes, and your energy is wasted. Therefore, we should make trading plans during non-trading hours.

We need to have a certain summary of the market

Since you are making a plan, you must have a general understanding of the current market conditions. This has nothing to do with whether you are a short-term trader or a medium- to long-term trader. The trading plan must be based on the current market conditions, otherwise it will be equivalent to castles in the air.

So how do we summarize the market? First, we need to review the market trends for the whole day. It is best to draw specific indicators to see the specific trends. Then, we can combine the fundamental information to see if there is any market news that can have a big impact on the market. In this way, we can basically see how the market moves in a certain period of time and why it moves in this way, and we can have a clear understanding of the market.

Consider the worst case scenario

Why do we need to add this point? Because the market trends in recent times are very strange. For example, crude oil once fell to negative numbers, and then returned to normal within a few months. These are "unprecedented" market conditions that we have never encountered before. I guess few traders can consider this situation, so we have to consider the worst case scenario.

So what factors should be considered? In fact, they are nothing more than a few points: What is your chance of winning a certain order? If you fail, what is the maximum loss you can bear? Under what circumstances will your account be liquidated? Is there a chance to escape before the account is liquidated? If you lose money in trading, will your quality of life be reduced? These are all factors we should consider.

Write down the notes

In fact, this is also a reminder to ourselves. When we are in the process of operation, various factors may cause our emotions to become unbalanced, and then some irrational operations may occur. Therefore, we need to remind ourselves and write down some things that should be paid attention to, such as not making orders frequently, operating according to the plan, etc.

Summarize

In fact, making a trading plan is not a simple matter. It is also necessary to consider factors such as entry point, exit point, stop profit and stop loss. It is not something that can be made in ten minutes. It requires multi-faceted analysis. However, the rewards of making a trading plan are also very tempting. Therefore, we should make a plan that suits us, so that we can make our trading journey easier. #VanEck提交首个SolanaETF #币安合约锦标赛 #IntroToCopytrading