What is a trading plan?
A trading plan is a predetermined set of rules, guidelines, and strategies that a trader uses for entering and exiting trades in the market. It outlines the trader's entry criteria, stop-loss levels, profit-taking targets, risk management rules, and all other trading-related variables. Trading plans help traders to maintain objectivity and discipline, make rational trading decisions, and avoid impulsive decisions. It is a crucial tool for traders to mitigate risks and maximize profits in the market.
This mind map was published on 16 May 2023 and has been viewed 130 times.
