#TradingStrategyMistakes Trading without a plan

One of the biggest mistakes new futures traders make is jumping into trading without a well-defined plan.

Without a solid strategy in place, it's easy to get caught up in emotions and make impulsive decisions. This can lead to unnecessary losses and impact your overall progress.

Before entering any trade, it's essential to have a clear plan that outlines your entry and exit points, risk management strategy, and profit targets. Stick to your plan and avoid making spur-of-the-moment decisions based on fear or greed.

How to create a simple trading plan

Start by setting achievable objectives and outlining your entry and exit rules.

Let's say you'd like to trade crude oil futures. You might aim for a 5% return on your initial investment over the next month.

You could decide to open your position when the price breaks above a specific moving average or technical pattern. For exits, you might decide to sell when the price reaches a target 3% above your entry or if it falls 3% below its current market price via a stop-loss order.

Regularly review and adjust your plan to align with changing market conditions.