Plan Your Trade

Think of your trading plan as your map to success. It will be a constant reminder of how you will make money in this market. You can trade without a plan if you want, but before you make that decision, let us give you a few reasons why you should have one.

1. Consistency is very important to have in your trading routine because it allows you to truly measure how successful you are as a trader. If you have a sound trading system but always break your rules, how can you ever really know how good your system really is? Your trading plan will keep you on target. Read it every day and stick to it.

2. I have never seen a successful business not start out with a plan. Do you honestly think Walmart was just created on a whim and then magically became successful? I’m sure almost anyone can make a better hamburger than McDonalds, but the difference between them and the individual is that they have a successful business plan that guides them to success.

However, the difference between a losing trader and a successful trader is the plan. If you have a good trading plan and you are disciplined enough to stick to it, you will be successful!