A trading plan is crucial because it provides a structured approach to trading, helping you make informed decisions and avoid emotional reactions. My trading plan outlines my goals, risk tolerance, entry and exit criteria, and strategies. This helps me remain disciplined and focused.
By defining entry and exit criteria, a trading plan has helped me manage risk effectively and maintain consistency in my trading.
Additionally, it has allowed me to evaluate my performance, learn from mistakes, and adapt strategies as market conditions change.
Ultimately, a trading plan is essential for achieving long-term success in the financial markets.
In one of the links to sources related to technical analysis that outlines how to understand a trading plan, its definition and how it works in my local language, it took me quite 15 minutes to read and I read it slowly while trying to understand each point by point, although it is good and rational, of course I still think that if I don't master the science of how to master the market, the trading plan will not work as planned.
https://pluang.com/akademi/pelajari/analisis-teknikal-101/memahami-cara-kerja-definisi-trading-planIn theory, it is explained and I agree that a trading plan that is made in a structured and measurable manner will bring us good results and is useful for managing existing risks.
There is something called universe assets and other things that may be in line, but in essence market control is very necessary because it is in balance with trading plans and strategies.