One of the most important things you can do for yourself as a trader is to have a trading plan.
I am yet to come across a professional trader that does not have a trading plan, this could be the most important part of trading. Unless you are a robot you will need a trading plan to keep you from making silly mistakes throughout your trading day.
I recommend creating a pre-trade checklist and during the trade checklist and an exit trade checklist.
Your trading plan does not need to be complicated, simply state bullet points with your rules.
Below is an example of the kind of things you would expect in your checklist.
Pre-trade Check List
If a news report is within 30mins do not trade.
Are you trading with the trend?
I am yet to come across a professional trader that does not have a trading plan, this could be the most important part of trading. Unless you are a robot you will need a trading plan to keep you from making silly mistakes throughout your trading day.
I recommend creating a pre-trade checklist and during the trade checklist and an exit trade checklist.
Your trading plan does not need to be complicated, simply state bullet points with your rules.
Below is an example of the kind of things you would expect in your checklist.
Pre-trade Check List
If a news report is within 30mins do not trade.
Are you trading with the trend?
- Have you determined your risk on the trade?
- Am I using the correct risk/reward
- Have I checked my entry and exit checklist?
- Is my desired risk-reward ratio met?
- Does the trade have more room to move?
- Am I letting greed take control?
- Always run through your rules before, during, and after a trade.
