Abstract：Simply because someone may be doing well with their trading strategy, it doesn’t mean it will also work for you. Not just in trading, but in this life generally We’re all in different situations in life, and we all have different market views, thought processes, risk tolerance levels, and market experiences.
Be your own trader.
Alternatively we mean : Don't follow someone elses trading advice blindly!
Simply because someone may be doing well with their trading strategy, it doesn‘t mean it will also work for you. Not just in trading, but in this life generally We’re all in different situations in life, and we all have different market views, thought processes, risk tolerance levels, and market experiences. Acquire your own personalized trading skills and update it as you learn from the market you're familiar with.
With rock solid discipline, your trading could look like this.
Expanding a Trading Plan and sticking to it are the two main ingredients of trading discipline. But trading discipline isn‘t enough. Even solid trading discipline isn’t enough.
It has to be rock solid discipline. Yes We repeat: rock solid, Like a brick wall.
Plastic solid discipline won‘t do. Neither will discipline made from straws and sticks. We don’t want to be little piggies. We want to be successful traders!
And having a brick solid trading discipline is the most vital characteristic of successful traders. A trading scheme defines what is intended to be done, why, when, and how. It entails your trader personality, personal expectations, risk management rules, and trading system(s). When sticking the procedure, a trading plan will help limit trading mistakes and minimize your losses.
Above all, “If you fail to plan, then youve already planned to fail.”
A trading plan removes any bad decision-making in the heat of the moment. Your feelings can consume you when money is on the line, causing you to make irrational decisions. You dont want that to happen. Preventing it from happening is the best way to reduce (take note we did not mean to eliminate) thinking by having a plan for every potential market action.
Everything have been clarified
With the best trading plan, so that in the heat of the moment you dont have to make any reckless decisions. You just simply stick to your trading plan.
The Difference Between a Trading Plan and a Trading System
Let's quickly distinguish the dissimilarity between trading plan and trading system Before we proceed.
• A trading system describes how you will enter and exit trades.
• A trading system is part of your trading plan but is just one of several important parts, i.e., analysis, executions, risk management, etc.
As the market conditions are always fluctuating, a good trader will usually have two or more trading systems in his or her trading plan. Trading systems will be covered more in-depth later on in the lesson, but we thought that it was important to point out the difference between the two upfront to avoid any confusion.
Why Do Forex Traders Need A Trading Plan?
These champions have one thing in common: they not only work their butts off, but they also enjoy what they do.
"Patience is the key to everything," American comic Arnold H. Glasgow once quipped. The chicken is gotten by hatching the egg rather than crushing it."
Ask any Wall Street quant (the highly nerdy math and physics PhDs who build complicated algorithmic trading techniques) why there isn't a "holy grail" indicator, approach, or system that generates revenues on a regular basis.
We've designed the School of WikiFX as simple and enjoyable as possible to help you learn and comprehend the fundamental tools and best practices used by forex traders all over the world, but keep in mind that a tool or strategy is only as good as the person who uses it.