A Trading Plan is a process you define yourself on how to trade. In simple terms, the Trading Plan means a Plan you make to execute your trade. It gives you a clear path on how you should execute your trade. With the trade Plan, you know the flow of how your trade should happen. You do your trading research in trade Plan more importantly.
Without the trade Plan, you will be so confused about what you are doing when you execute your trade. A confused state of mind will always lead to losses where you lose money. A perfect and clear trade Plan can help you to increase your profits and make you a successful trader.
There are many factors you should consider in your trading Plan. But as a beginner in trading, you may not be aware of many aspects which you should consider in your trade Plan. Some factors in the Trading Plan can be simple but they make the essential part of every trade Plan, E.g., Time you can spend for trading.
As a Beginner, entering into trading without any knowledge can lead to unsuccessful trades and leading to losses. This may eventually decrease your confidence to trade. So, it is important that you educate yourself about the basics of trading before entering a live trade. Trading Critique experts recommend you to read the article on Trading: All you need to know about, to get yourself educated about the basics of trading. A Trading Plan is also an important part of the basics in trading. Now let us see how to create your first Trading Plan.