How to Develop a Trading Plan?
Creating a structured and effective plan is crucial for success in trading. This plan will guide you and help you avoid emotional decisions. Follow these points to create a successful trading plan:
1. Set Your Goals
Short-term: Daily or weekly profit target.
Long-term: Portfolio growth or financial freedom.
Keep your goals realistic and achievable.
2. Choose Your Strategy
Select a strategy based on your skills and knowledge, such as:
Price Action
Supply and Demand
Order Flow or SMC
Understand each strategy well and stick to it.
3. Create a Risk Management Plan
Risk Limit: Do not risk more than 1-2% of your total capital on each trade.
Stop Loss and Take Profit: To minimize losses and secure profits.
4. Analyze the Market
Conduct both Fundamental and Technical analysis of the market before trading.
Check news and data.
Look at key support and resistance levels.
5. Control Your Emotions
Do not make decisions based on fear or greed during trading.