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Tagged: Fundamental Analysis, Technical Analysis, Trade Plan
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Trade plan is nothing but the ability to derive the risk and reward. by understanding that we can either buy or sell the shares with huge profit.
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A trader whose follow a method to investment is called trade Plan.
Without trade plan he might loss and loose everything.
Determining the position to take (long or short) , volume and defining the stop loss.
Without trading plan if we buy / sell stock we may end up in loss over a period of time.
Trade plan is a plan through which the trader decides weather to place a buy order or a sell order and to decide on the stop loss. Trade plan ensures the trading is done without emotions and understanding the risk and returns from a particular trade.
Trade plan is identifying the stock, position, risk, reward and make rational decisions.
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