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.
Not only in trading because wherever we run a plan is something that is needed.
Especially if involvement in trading and without a good plan we will not achieve the goals of the trading that is done because we do not know what to do. Trading does involve a lot of analysis because it requires the ability to see the movement of coins in the market and this method is a little more difficult to learn without discipline.
With a plan we can create a strategy because we know what to do in trading.
People say strategy is more important than a plan, but for me with a plan it will be much easier to create a strategy. Both are interconnected and need prior knowledge to achieve perfection in trading.