No Plan, No Trade

This is a discussion on No Plan, No Trade within the Psychology, Risk & Money Management forums, part of the Methods category; as I just mentioned on my thread ................you do need a plan or you are just chasing the market up ...

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Old Apr 14, 2015, 8:54am   #9
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as I just mentioned on my thread ................you do need a plan or you are just chasing the market up and down like a terrier on heat

looks like this one is scalping ........hes so fast !!!!

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Old Apr 14, 2015, 3:35pm   #10
 
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Originally Posted by amazingfx View Post
Totally agree with this thread. It is impossible to make successful trades with no plan, this is the essence of the trading. With no plan a trader would be trading randomly, instead with an analyzed strategy based on market trends.
Worse than no plan is a bad plan.

Many many traders have a bad (or outright disaster waiting to happen) plan, but think they have a good one.

And I know not of this "trend" that you speak.

One needs a methodology that is based on how and why a market moves, and thus what the market can or cannot do.

G.
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Old Apr 14, 2015, 3:36pm   #11
 
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Originally Posted by NVP View Post
as I just mentioned on my thread ................you do need a plan or you are just chasing the market up and down like a terrier on heat

looks like this one is scalping ........hes so fast !!!!
That dog is so me when i try to scalp

I dont have the patience so scalp, that why i trade big charts.

G.
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Old Oct 27, 2015, 7:26am   #12
 
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Worse than no plan is a bad plan.

Many many traders have a bad (or outright disaster waiting to happen) plan, but think they have a good one.


G.
But bad plan wasn't from the trader itself, it just when the market doesn't go with their plan and it's not a bad plan though. Bad planner is when they're change the plan and didn't stick to their first plan when the market doesn't go with their plan.
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Old Nov 2, 2015, 12:31am   #13
 
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But bad plan wasn't from the trader itself, it just when the market doesn't go with their plan and it's not a bad plan though. Bad planner is when they're change the plan and didn't stick to their first plan when the market doesn't go with their plan.
What the...? I think youve totally missed the point of this thread, and I dont think you can see there is a difference between planning and execution.

A Plan that doesnt include contingency for the market going against you isnt a plan, its a disaster waiting to happen. It is worse than no plan.

A plan isnt "I will review my positions at 6pm each evening" or "I will only risk 1% of my account on each trade" or "I will follow my trade rules"
Those things are mental masturbation.
Things like that get in the way of planning a trade, and give a false sense of security.

A plan goes a lot more like
I am long if price gets down to 1.0000
If price closes below 0.99 I will reduce lots and normalize risk, while i wait for price to close back above 1.00 or show that it is unlikely to close back above 1.00
If price closes above 1.05 I will add lots, normalize risk, and lock in some profit by doing so.
If price gets to 1.10 the trade is over. I will reallocate profit as either more leverage or less risk.

there are, of course, reasons for choosing those numbers, they arent just plucked out of the air.

and always remember... "No plan survives contact with the enemy"
One must be flexible. A locked in stone plan is also a disaster waiting to happen.

B.
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Old Nov 12, 2015, 12:56am   #14
 
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Originally Posted by Samsu_samsul View Post
But bad plan wasn't from the trader itself, it just when the market doesn't go with their plan and it's not a bad plan though. Bad planner is when they're change the plan and didn't stick to their first plan when the market doesn't go with their plan.
A plan is very simple as follows.

Just think of RO3T to remember it.

1. Risk Control
2. Opportunity Identification
3. Trade Initiation
4. Trade Management
5. Trade Closure

Each of the 5 components will be as complicated, or as simple, as the trader makes them. What usually transpires is that most start out with very complicted detail and end up with very simple detail, providing they last long enough to learn and make the changes that is.

Lúidín
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Old Nov 12, 2015, 6:35am   #15
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Originally Posted by Lúidín View Post
A plan is very simple as follows.

Just think of RO3T to remember it.

1. Risk Control
2. Opportunity Identification
3. Trade Initiation
4. Trade Management
5. Trade Closure

Each of the 5 components will be as complicated, or as simple, as the trader makes them. What usually transpires is that most start out with very complicted detail and end up with very simple detail, providing they last long enough to learn and make the changes that is.

Lúidín
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Old Dec 23, 2015, 9:55am   #16
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I really couldn't agree more. Just sitting down and opening a trade without a plan in your head leads to disaster. I've witnessed it, I may have done it as a total newbie too. Having a plan is essential when you're a trader. That said, for all of one's plans it's also necessary to learn to be adaptable.
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