Question
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Any profitable trading plan?
10 Answers
<p>If the plan doesn't work in a demo account, it won't work in the real world. Revise the trading plan, then go back to the demo account to test out the changes. This process continues until a profit has been made for several months in a row. At that point, it is likely the trading plan is a good one.</p>
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<p>Each day, take a screenshot of your chart with all your trades marked on it. At the end of the week, review the charts for the prior week and note deviations from the trading plan. Note any areas of the trading plan that could be improved. Write down a plan for how to implement these improvements.</p>
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<p>Prepare a checklist to run through before every trade. The checklist makes sure that the trade meets all the specifications laid out in the trading plan. It only takes a second to mentally go over the checklist, but it can save a trader from many bad trades.</p>
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<p>Over time, traders will notice their weaknesses, such as not taking a loss when they should (and letting it get bigger) or taking trades that don't align with the trading plan (and thus, these trades are based on an unproven strategy). Such weaknesses can cause big losses in a hurry. Have a personal plan for what you will do when you notice yourself making one of these mistakes.</p>
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<p><br>The stop-loss should be placed where it limits the damage caused by a losing trade to less than 1% of the trader's account balance.</p>
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