đ§ What Is a Trading Plan (And Why You Shouldnât Trade Without One)? đ§
When youâre just getting started with crypto trading, itâs super tempting to jump into the market and start buying coins just because theyâre trending or someone tweeted about them. But hereâs the truth: if you trade without a plan, youâre basically gambling. A trading plan is like your roadmapâit tells you when to enter, when to exit, how much to risk, and what to do if things go wrong.
So, what goes into a basic trading plan?
1. đŻ Your Goal â Are you trading to make quick gains (day trading), or are you holding for weeks or months (swing trading)? Decide what your goal is, because it changes how you make decisions.
2. đ Entry Strategy â Donât just buy because the price is going up. Use simple tools like support/resistance or RSI to decide when it makes sense to enter a trade.
3. đ Risk Management â Set a stop loss. Always. This means you choose how much youâre willing to lose before the trade is closed automatically. Beginners often skip this part and end up watching their account bleed.
4. đ Exit Plan â Know when to take profits. You can set a take-profit target or scale out of a trade slowly. Donât get greedyâprofit isnât real until you lock it in.
5. đ§ââïž Discipline â Stick to your plan. No emotions, no chasing pumps, no panic selling. The market will always test your patience.
Why does this matter? Because without a plan, your trades become random. Youâll win some, lose more, and burn out fast. A good trading plan doesnât have to be complicatedâit just has to make sense and protect your money. Learn it early, and your chances of success go way up đ.
