Trading Strategy And Trading Plan

A solid trading plan is the cornerstone of your trading business. Unfortunately many traders think that all they need is a trading strategy. This is NOT the case! Let me explain the difference between a trading strategy and a trading plan.
A trading strategy tells you when to enter and when to exit trades. A trading plan is more comprehensive than a trading strategy. A trading plan covers at least seven elements:

1. The market(s) you want to trade.
2. The timeframes you want to trade, e.g. 5 min, 10 min, tick or range bars.
3. A brief description of the strategies you want to trade and when to use what strategy.
4. The entry rules of the strategies.
5. The exit rules of the strategies.
6. Other important rules, e.g. when to trade and when not to trade.
7. The money management approach you are using.

You will notice that I approach the markets with multiple trading strategies. Every professional trader uses more than one trading strategy for a very simple reason: Typically trading strategies are

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