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  • Item Upon - The Importance of a Trading Plan

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    You have to describe the conditions that have to be met before you enter a trade. You also have to describe the conditions under which you will close a position. These cond

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    Trying to win in the stock market without a trading plan is like trying to build a house without blueprints - costly mistakes are inevitable.

    Why do you need a Trading Plan?

    1 - During trading hours, emotions will turn smart people into idiots. Therefore, you have to avoid having to make decisions during those hours. For every action you take during trading hours, the reason should not be greed or fear. The reason should be because it is in the plan. With a good plan, your task becomes one of patience and discipline.

    2 - Consistent results require consistent actions - consistent actions can only be achieved through a detailed plan.

    What should be in your trading plan?

    1 - Your strategy to enter and exit trades

    You have to describe the conditions that have to be met before you enter a trade. You also have to describe the conditions under which you will close a position. These condi

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    >1 - During trading hours, emotions will turn smart people into idiots. Therefore, you have to avoid having to make decisions during those hours. For every action you take during trading hours, the reason should not be greed or fear. The reason should be because it is in the plan. With a good plan, your task becomes one of patience and discipline.

    2 - Consistent results require consistent actions - consistent actions can only be achieved through a detailed plan.

    What should be in your trading plan?

    1 - Your strategy to enter and exit trades

    You have to describe the conditions that have to be met before you enter a trade. You also have to describe the conditions under which you will close a position. These cond

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    hours, the reason should not be greed or fear. The reason should be because it is in the plan. With a good plan, your task becomes one of patience and discipline.

    2 - Consistent results require consistent actions - consistent actions can only be achieved through a detailed plan.

    What should be in your trading plan?

    1 - Your strategy to enter and exit trades

    You have to describe the conditions that have to be met before you enter a trade. You also have to describe the conditions under which you will close a position. These cond

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    esults require consistent actions - consistent actions can only be achieved through a detailed plan.

    What should be in your trading plan?

    1 - Your strategy to enter and exit trades

    You have to describe the conditions that have to be met before you enter a trade. You also have to describe the conditions under which you will close a position. These cond

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    trades

    You have to describe the conditions that have to be met before you enter a trade. You also have to describe the conditions under which you will close a position. These conditions may include technical analysis, fundamental analysis, or a combination of both. They may also include market conditions, public sentiment, etc...

    2 - Your Money management rules to keep losses small - the goal of money management is to ensure your survival by avoiding risks that could take you out of business. Your money management rules should include the following:

    - Maximum amount at risk for each trade.

    - Maximum amount at risk for all your opened positions.

    - Maximum daily and weekly amount lost before you stop trading

    3 - Your daily routine - after the market closes, before it opens, etc...

    4 - Activities you carry out during the weekend.

    5 - I also like to include reminders t

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