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How to write a good trading plan
What topics are covered in this chapter?
This chapter discusses:
- components of a good trading plan
- writing out the trading plan
- following the trading plan with discipline.
What are the objectives?
A trading plan is necessary because it is a map of successful trading strategies. Trading plans contain the trading rules that put the probability of winning in the long run in the trader’s favour. To have a trading plan is to have a disciplined entry and exit without emotional constraints.
Trading is fun and exciting, but it does not fulfil the emotional or psychological need for winning, as in other games. Trading is a probability game, there is a 50% chance of winning and a 50% chance of losing. This is ...
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