There are many reasons for the failure of traders. One of them is lack of discipline. A trader must not be emotional in trading. Either greed or the fear of losing can lead to wrong decisions which can be very harmful. So one must maintain discipline and make a well constructed plan for trading.
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Who are you talking to?
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When will you reveal the well-constructed plan essential?
I think this post was the answer to another post - which I missed but I think it went this way -
“A badly constructed plan essential! Even better, no plan at all!”
"There is only one reason for the failure of traders! And it is too much discipline! A trader must be emotional in trading as much as possible, preferably erratic and just plain moody! Greed and the fear of losing can lead to great decisions which can be very humourous! So forget about discipline and don’t waste a moment making a well constructed plan for trading! Traders of the world, “Unite! Stop planning!”
Thank goodness for @forexheart.
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Having a well defined plan can make a huge impact on your trading career. A well defined plan sets out boundaries and helps traders avoid emotions while trading. Therefore even if you have had much experience on a demo account , moving without a well defined plan can be a challenging thing to do. A well defined plan will help you identify your goals, organise your market research and decide when to take a position.
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Exactly. I always tell myself to never chase a trade. Plan the trade and then trade the plan!
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I fully agree that making a plan is very necessary for all traders, especially those who have problems with emotions. The plan will help you to be more disciplined and will protect you from wrong decisions, which are provoked by your greed.
In the absence of a plan, you would not know when to enter or exit a trade. You should be well planned for your profit that you expect and the stop losses. A trading plan will guide you and you can get to know where you stand in the trading field. A trading plan will keep your emotions at bay, identify your goals and lead you to become a profitable and professional trader.
there are two type of people in this world , one just always do plan and plan, they like to make plan than practical works , and the others one make plan and work hard according to this.
The plan in trading is one of the most important components. Because without it, you will be lost all the time. For a better understanding of what you need to do in trading next, you can start keeping your trading journal. There you can write down all (or most) of your actions in the market, analyze mistakes and more. In this way you will develop discipline in yourself, and you will have at least some approximate plan of what you need to do next, what problems you need to work on and so on. Personally, this advice helped me a lot))
A trader fails if he does not have a trading discipline. Discipline helps a trader reach his goal. Greed and fear are other major problems for traders. If you can’t solve these problems, you will never succeed in trading. To solve these problems, you have to pay close attention to trading and never focus on profit. Just keep in mind that you need to develop skills. When a trader develops skill and trades, the profit automatically comes to him.
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‘Everyone has a plan until they’re punched in the mouth’
Mike Tyson
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You can never be successful without a trading plan. It has happened to me that when I would sit in front of the trading platform and open the trade without any plan, I would face loss as a result. Because I had no plan in trading. A planned person can rate a knowledgeable person. So in trading, you should always manage by planning and discipline.
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True. That;s because without a plan you don’t have a vision. A trading plan helps you clearly see things and outlines boundaries, sets entry and exit points and most of all help you stay disciplined.
If you are completely new trader, it is better to have trading plan. I think that it is good because you will think about all details of your trade before you actually start trading. During time, you will probably use it less frequently, but it comes with experience
I also agree with you. If a trader is disciplined and keeps his emotions aside, there is nothing that can stop him from becoming a successful trader.
Rightly said, trading requires discipline in and emotions out.
Keeping emotions out is impossible for humans and that too if you are trading as well. Planning helps us to work and achieve for the motives that we are aiming for.
Planning not only gives you the right way to judge ‘what to do next?’, but also provides that required confidence. Framing a plan is important, at the same time reviewing it too.
I agreed. A trading plan is very important in forex because your decision will turn into profit or loss.
It’s true that a trading plan doesn’t guarantee success, but a good plan will help you stay in the forex game longer than those who don’t have trading plans.