Plan Your Trade, And Trade Your Plan

In the investment we should make also a "Trading Plan". In which we choose what products will be traded, what indicator techniques will be used. Then, how much funding will be transacted, how many lots we can take, and how the target gains and losses of our brave bear.

In the plans we make it, then the set objective and sales target company and calculate the costs that must be spent where it should not exceed the proceeds that could benefit eventually.
With planning, we will be able to work in accordance with a clear direction and able to manage all resources to achieve the objective that we want. Trading plan will also assist us in monitoring the price movements and take advantage of what we want and limit the losses that may occur.

However, there are other reasons but not least about why we should have a trading plan. This is related to psychological problems of trading. If we have a plan in the trading and we follow that plan, we expect to avoid the emotional turmoil which is the main enemy of the trader. We should be able to be quiet during the sessions that hot at the time trading hours and stay focused on the goal. For this to be done, we should really totally organized before entering the market. Our mission is to make profits from investments, or if they fail, not to lose too much.
In a normal market movements, we must obtain a normal profit. We can determine how many points to take profits after the price moves in accordance with the predicted.

In a market that moves abnormally, which rarely happens, we must obtain what is called an abnormal profit. This is one secret of success in trading.

In addition, we also must always limit losses on investments are not moving according to plan. We must also determine how many points will do the wrong position closing because the price has moved does not match that predicted.

However, it requires the strength of our desires, which is called "will power," to implement what has been determined.

Another form is that we must use what is called "stop loss order". Stop orders are placed at the same time that we make a new order. If we have a trading plan, we generally know what to do if the market moves as we have anticipated.

What if the market moves do not fit with what we anticipated? It is time to decide whether to take advantage of still available, or to cut losses as soon as possible. At the moment things are not going well, when we are in a quandary, straight out of the market. If we had a compass in the desert and showed there was an oasis in the north, do not do something stupid to follow the mirage in the west. There is no better move than to get out, if we are wrong in taking a position.

Have you made a trading plan? If so, follow it.

Articel source : http://www.articlesbase.com/currency-trading-articles/plan-your-trade-and-trade-your-plan-1870776.html#axzz1QAk7Ba5p 

Picture source : http://aispecial.blogspot.com/2009/09/plan-trade.html