Uh oh!
You’ve learned so much and have come so far in your education, and yet you're
still haven't graduated high school. No, you’re not dumb, BUT you didn’t have a
trading plan.
Our
point is that you can fill your mind with plenty of information, but without a
good trading plan and the discipline to stick to it, you will NEVER be
profitable.
Think
of your trading plan as your map to success. It will be a constant reminder of
how you will make money in this market. Of course it’s not required, and if you
can make your living by trading without a plan, we will bow down and hail you
as the Market Zeus of the Forex.
So you
CAN trade without a plan if you want, but before you make that decision, let us
give you a few
reasons WHY you should have one. Why Have a Trading Plan?
Reason 1: It keeps you in the right direction
Consistency
is very important to have in your trading routine because it allows you to
truly measure how successful you are as a trader. If you have a sound trading
system but always break your rules, how can you ever really know how good your
system really is? Your trading plan will keep you on target. Read it every day
and stick to it.
Reason 2: Trading is a business and successful businesses ALWAYS have plans
I have
never seen a successful business not start out with a plan. Do you
honestly think Walmart was just created on a whim and then magically became
successful? Or what about McDonalds? I’m sure almost anyone can
make a better hamburger than McDonalds, but the difference between them and the
individual is that they have a successful business plan that guides them to
success.
In the
same way, you can relate the McDonald’s story to your trading career.
Whether it’s by luck or experience, everyone can make money in the forex.
However, the difference between a losing trader and a successful trader is the
PLAN. If you have a good trading plan and you are disciplined enough to
stick to it, you will be successful!
Now
you know why you should have a trading plan. Let's find out what
makes up a trading plan...