{"id":7234,"date":"2021-03-04T19:13:34","date_gmt":"2021-03-04T16:13:34","guid":{"rendered":"https:\/\/roboforex.com/blog\/?p=7234"},"modified":"2023-06-23T09:04:39","modified_gmt":"2023-06-23T06:04:39","slug":"how-should-a-beginner-prepare-a-trading-plan","status":"publish","type":"post","link":"https:\/\/roboforex.com/blog\/blog\/2021\/03\/04\/how-should-a-beginner-prepare-a-trading-plan\/","title":{"rendered":"How Should a Beginner Prepare a Trading Plan?"},"content":{"rendered":"\n

In this overview, we will discuss preparing trading plans. A trading plan helps evaluate the current market situation and make the trader’s plans come to life.<\/p>\n\n\n\n

<\/span>What is a trading plan necessary for?<\/span><\/h2>\n\n\n\n

A trading plan<\/strong> is something like a road map for traders. Based on the trading strategy<\/a> that you use, a trading plan formulates existing trading opportunities and promising trades. Promising trades are those that have a high probability of a success; they are made in the right place, at the right time, with a moderate risk and a good potential profit.<\/p>\n\n\n\n

A trading plan must describe your trading ideas, your analysis of the current situation in detail. It makes a “picture” of your view on the market on paper (or in a file). On the whole, successful analysis and a correct opinion about the market do not guarantee good trading by themselves, however, your current thoughts can show you the field where you can look for trading ideas.<\/p>\n\n\n\n

Having a clear and easy-to-understand trading plan, a trader stops making chaotic emotional trades. They are no more a helpless wood chip on market waves. They set their sails and starts off towards their profit, finding and closing promising trades. Thanks to the plan their trading becomes more efficient.<\/p>\n\n\n\n

<\/span>Preparing the plan<\/span><\/h2>\n\n\n\n

The process of preparation can be split in several steps: technical picture, fundamental factors, additional signals<\/a> (indicators<\/a>), risk control, taking the profit. Active traders make trading plans every day in the morning, bringing it to life during the day with necessary corrections and amendments.<\/p>\n\n\n\n

<\/span>Step 1: Technical picture<\/span><\/h3>\n\n\n\n

To evaluate the technical picture in an instrument, we use good old tech analysis<\/a>. Open the chart of your financial instrument, check several timeframes<\/a> (starting with larger ones and going down to smaller ones), and mark all the important factors:<\/p>\n\n\n\n