Building a Trading Plan

Components of a Trading Plan

• Market Selection: Decide which markets or assets you will trade.

• Timeframes: Choose appropriate chart timeframes based on your trading style.

• Strategy Outline: Define your entry and exit criteria, including indicators and patterns.

• Risk Management Rules: Specify your risk per trade, maximum daily loss, and position sizing method.

• Record Keeping: Maintain a trading journal to document trades and reflect on performance.

Testing Your Plan

• Backtesting: Apply your strategy to historical data to evaluate its effectiveness.

• Demo Trading: Use a simulated trading account to practice without risking real money.

• Review and Adjust: Regularly assess your trading results and make necessary adjustments to your plan.