What you should do when trading.⚡️
Creating and using a trading plan provides a blueprint for your trading activities and outlines the necessary actions you should take when trading.. Your trading plan should record your goals, methodology, analysis process, and risk/reward levels.. A well-crafted trading plan will also provide you with the controls necessary to keep your trading on track..
The main elements of a trading plan include:
1. A daily process to review the previous trading session or trading time frame.
2. A process to identify trading opportunities:
a. A macro analysis of the current market – news, economic reports, and other influencing factors.
b. A micro analysis of the current market – reviewing charts and indicators.
3. A desired entry point.
4. Specific risks for each trade.
5. Specific levels for stop loss and take profit orders.
Every individual trading plan is unique, but at the very least it should contain the five elements listed above.. Record your trading process by preparing a written plan on paper and following it as is so you can streamline your trading efforts.
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