Thanks kuya econo.. pro la clang 1:100 e.. hehehe..
I like to share from an email:
As I receive more and more of the questions sent in by my subscribers, I realize that a good number of people are missing out on the one key ingredient to profitable trading - having a trade plan.
Yeah, yeah - I'm sure you've heard it all before... but just give me a moment to ask you: what exactly is a trade plan?
These days, the term "trade plan" has been so carelessly used that no one really understands what it really means.
Many of the available online resources (especially those that are 'fre.ely' available) often say, "you must have a trade plan", without actually telling you what it is.
By the end of this email, it is my hope that you'll gain a solid understanding of what a trade plan is, and how you should go about developing one.
First of all, here's my definition of a trade plan:
"A trade plan consists of an action (or a series of actions) to take, given the specified conditions during the progression of a trade"
Put simply, this means that a good trade plan will tell you exactly what to do the MOMENT you enter into a trade, until you exit the trade. That's the only purpose of a trade plan.
In essence, a trade plan presents multiple "if - then" scenarios to guide you along as your trade progresses.
Here's a sample trade plan, for example:
1) If the price goes in my direction for 30 pips, I will move my stop loss to the breakeven price.
2) If the price hits my first profit target, I will square off half my positions.
3) If the price hits my final profit target, I will square off all my remaining positions.
4) If the price goes against my trade entry position, I will not do anything until my stop loss is hit.
And there you have it. This is an example of a trade plan.
Notice that the trade plan did not mention anything about WHERE to set your profit targets or stop losses. That's not what a trade plan is for - that's the job of your trading system.
So basically, your trade plan is a list of all the actions you will take, if the market behaves in a certain manner.
If you're new to Forex trading, I would advise you to write down your trade plan every time you enter into a trade. I know this can be a little tedious, but trust me: it will greatly help you to stay disciplined during a trade.
Also, remember to always come up with your trade plan BEFORE you enter into a trade. Not after. This is very, very important.
And that's all there is to it.
One last thing before I go: a trade plan is only ever as good as the trader who follows it.
You will definitely feel the temptation to change your trade plan in the middle of a trade, and this is a feeling you'll just have to learn to resist. The reason why so many traders lose money is because they either don't have a trade plan, or they don't have the discipline to follow it.
So don't be like them. Work on your discipline and your trading account will show the rewards of your hard work and determination.