Should You Trade With A Plan Or Not?
Many traders are still quite unsure if they should create a trading plan or just trade according to their instinct. They think that trading plans are just a waste of time and resources. They focus more on their strategy without knowing that a trading plan is also part of their trading strategy. However, if you enter the world of trading, where your decisions translate into losses or profits, it is important to have an easy-to-follow but well-outlined trading plan because it surely makes a difference when it comes to your success or failure in trading.
Even though you are already using a good trading platform like MetaTrader 5 (MT5), you should see to it that you also have a trading plan that will guide you to your success. Just think about it, if you don’t have goals, you will not be sure when to get out of the trade or when to start trading. Always remember that a trade needs to be liquidated before the profit gets realized. Successful traders always have a trading plan and they depend on it because they see it as a guideline to their success. Check out some of the advantages of having a trading plan below;
To have a trading plan right before you start to trade is just like having a map even before you start to travel. You know where to go. You know the direction to take. Are you willing to go on a trip where you don’t know where you are leading? Trading is very difficult and confusing, especially for new traders. Even in a demo account, you will know that trading isn’t something you can joke about. After all, your money is on the line.
But when you have a trading plan, it is the same as treating it like a business rather than a mere game of luck. If you are familiar with running a business, it needs a trading plan to achieve an organized basis where you get better trading success. More importantly, the clarity and objectives that a trading plan provides can be very helpful especially if you are making quick trading decisions and taking advantage of the opportunities brought to you in the market.
Above all, the greatest advantage of having a trading plan stems down to the fact that it provides a great opportunity for traders to trade more confidently and without involving too many emotions. When you engage in a risky endeavor such as trading, having a trading platform like MT5 that you can rely on isn’t enough. You also need a trading plan which will help you achieve enough confidence to be able to return to the financial market even after you take a painful loss.
As you all know, emotions such as greed and fear are very troublesome when trading. Therefore, it is very important that you manage them correctly to avoid serious trouble. Overcoming them will help you overcome the pitfalls of trading. In this case, a good trading plan can provide the best help.