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.
Having a plan towards making a trade is a crucial aspect i which needs more attention in other for us to have a bearing on how our trade is going to look and the direction to take, this may includes on the adopted strategies, time and duration needed as well as the trading pattern needed to use, planning our trades will help us towards achieving what we wanted and also increases our chances for arriving at the target we aimed on trades.
No trade should be made without a well made trading plan. That’s what it should be, but I doubt if these newbies who decide to trade in a rush have constructed a good trading plan first because obviously, they won’t be trading at a loss or let’s just say, they would have minimize their losses in trading if they prepare a trading plan prior to trading in the market.