Why Trading Plan is must for traders

All successful traders have one common, yet very important ingredient in their trading methodologies: a game plan.

 “Many traders and investors go through their sometimes very short investing lives planning trades they never execute and executing trades they never plan.”

“Experience has proven that success follows the wise trader/investor who identifies an effective strategy, and has the discipline necessary to carry it out,”

There are two key elements that distinguish the successful trader from the unfortunate majority: strategy and discipline.Many traders take positions “based on impulse, hunch, or what they read from a newsletter--instead of reason--and then wait to get lucky. They have not learned or probably even thought about the fact that even the very best traders consider themselves fortunate to be right on most trades, or even to make significant profits during most years.”
“If the trader will take the time to plan his trades properly, he can possibly have the odds on his side in the long run, which is something few gamblers could ever attempt to achieve. Over the long term, those traders/investors that are still operating in the markets--and who have followed a carefully thought out and well-defined plan in a disciplined manner--expect to have favorable results,” said Tirone.


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