Here’s one piece of advice you should always remember.
Be your own trader.
In other words: Don’t follow someone else’s trading advice blindly! Just because someone may be doing well with their method, it doesn’t mean it will work for you.
What are the components of a good trading plan?
Here are 10 essentials that every plan should include:
1. Skill Assessment
Are you ready to trade? Have you tested your system by paper trading it and do you have confidence that it works? Can you follow your signals without hesitation? Trading in the markets is a battle of give and take.
The real pros are prepared and they take their profits from the rest of the crowd who, lacking a plan, give their money away through costly mistakes.
2. Mental Preparation
How do you feel? Did you get a good night’s sleep? Do you feel up to the challenge ahead? If you are not emotionally and psychologically ready to do battle in the markets, it is better to take the day off – otherwise, you risk losing your shirt.
This is guaranteed to happen if you are angry, preoccupied or otherwise distracted from the task at hand. Many traders have a market mantra they repeat before the day begins to get them ready. Create one that puts you in the trading zone.
Read more: 10 Steps To Building A Winning Trading Plan http://www.investopedia.com/articles/trading/04/042104.asp#ixzz4flc6UZpr
Or watch the video below:[tubepress mode=”tag” tagValue=”How to Design a Simple Trading Plan – For Beginners Forex”]