HOW TO DEVELOP YOUR OWN TRADING PLAN

Trading plan is like a map that tells how the things will be done. Any trade without a plan is a gamble. You might win few trades without a trading plan but in a long run you are destined to lose your money so trading plan is a must.

There are 8 key points every trading plan should have:

1) TIMEFRAME

a)Day trade

15’ - 60’

b)Swing trade

4H - 1D

c)Position trade

1D - 1W

2) RISK MANAGEMENT

Risk 1-3% of capital per trade

3) CONDITIONS

a) Ranging

b)Trending

4) MARKETS

a) Spot

b) Margin

c) Future

5) ENTRIES

a) Pullbacks

b) Breakouts

c) Crossover

6) STOPS

a) Percentage loss

b) Away from market structure

7) TARGETS

a) Fixed

b) Trailing stop

8) JOURNALING AND REVIEWING THE TRADES (both winning and losing trades)

By using these 8 simple steps you can create your own trading strategy.