How a trading plan can make trading easier and more efficient
Some traders think they can trade without a trading plan. Strangely, most people don’t stick to a strategy either. In this article, we will explain how a trading plan makes trading easier and more productive. Who wouldn’t want to trade like a pro?
If you are not asking the question “What am I going to do today?” when you get on the PC, you lack certainty. A trading plan can solve this situation. The reality usually turns out to be worse than expected. It is always advisable to plan. Planning is better than no plan. Let’s take, for example, two traders. The first one does the same thing many times: sits down at the trading terminal trying to find a deal he likes or “seems” profitable. Nevertheless, the second trader comes to the terminal, looks through the plan, the tasks waiting for him: a training plan, ideas to improve the trading diary, etc. It is much quicker and easier to cope with the plan.
It goes without saying that all individual activities where no one controls you are a business. Trading is one such activity. In any business, the written formulation of objectives is important for several reasons. The objective sets a general guideline for development. For example, you wish to make 75% of profitable transactions. Therefore, with such a target, you will have to focus on the quality of transactions and constantly review them in your transaction record. Your goal will not allow you to make mistakes. There are times when you want to do everything at once: earn on bitcoin, learn how to trade correctly, invest in stocks or open a deposit in a bank. But more often than not, there is neither the time nor the money to do it. So for that reason you have to do more than just set goals in a trading plan. You must clearly articulate why these goals are a priority and why others can be delayed.
Actually, no effort gives you the incentive to work even harder than realizing your success. This is why beginners buy fitness trackers. Initially, you just move around in absolute emptiness. And visualizing your progress in the form of charts will allow you to maintain your inner strength and not give up on what you’re passionate about. Therefore, when you make a trading plan, the first thing to do is to formalize the ‘goals’ and ‘progress’ sections.
Certainly, trading in highly volatile markets requires emotional control. Our “trading mind” must always remain calm and confident. Trading based on emotions is detrimental and quickly drains your money deposit. That’s why we should ignore emotions and wishes for the time of trading.
However, having a trading plan can completely change the way you approach trading. A plan can change the mindset, shifting the focus from looking for quick money to professionally pursuing a new business. By making a trading plan, you get to work efficiently and ensure yourself against “accidental” losses. Trading the stock exchange consists of many factors that require continuous control. Therefore, keep your trading plan in mind.
If fast transaction confirmation is your priority, don’t hesitate to use the services of the bit4you cryptocurrency trading platform. Bit4you is the first Belgian cryptocurrency platform that operates on the European level. There you can buy, sell and trade with over 20 crypto assets without any risks and limits. Bit4you Academy and Demo mode will help to master your skills in crypto trading and investments. It’s high time to expand your horizons and start your crypto journey with bit4you!
Tatiana Leveria, Team bit4you