Drawing your map to success is of vital importance. The “come-what-may” attitude is not applicable in Forex, and even in the concrete jungle out there known as the real world. The forex market is a terrain full of traps and pits that lurks on every corner awaiting for you to make a mistake and swallow up your investment. If you're not careful then you might find your self falling in a swirling path of loss.
Getting a little profit is never enough. Even if you manage to get hold of a little profit, I doubt it would be enough to survive long.
Here are some reasons why you should consider devising a trading plan:
Keeps you on the right path – knowing your target profit and the limit of loss is very important. Managing your profit/loss ratio keeps track on your performance. How much you had gained so far and the damages that had been incurred on the process will indicate your target on the next trading session. It gives you the light to your target and also keeps you on schedule.
No business would survive without a plan – every investment needs a careful planning in order to flourish and survive. Trading only at your whim and intuition is an impending catastrophe awaiting to happen. If you want your investment to stay alive, better consider the option of brainstorming first before jumping into action.
If ever you're wondering what a trading is made of, then you may refer to these terms.
Pillars of your trading plan
1. The trading system
2. trade routine
3. mindset
4. weaknesses
5. goals
6. trading journal
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