Why are trading plans so important?
Well, that is the question that was asked by a lot of people throughout the years. And I will tell you everything about the importance of a trading plan.
First of all, we you have probably spent time developing the plan, looking for the best solutions and extending it as far as trading plans go. And throwing all of it away just because you feel adventurous of do not feel like going along the plan seems reckless and is not really a good testimony to your will and your respect to your own time.
Second it is going to lead you to losses inevitably.
How, will you ask. And I’ll tell you.
Trading plans are created for us to receive as much reward and wins as possible. But there is still several factors which can come in effect outside of the plan. To cut a long story short it is possible to win several trades without trading plan thus deciding that is you are rewarded for trading without it, you do not need it at all. But that is a dangerous misconception.
Sooner or later you are going to see what trading without a plan can bring – losses and only losses.
Of course across say 50 trades with no trading plan you are going to see some profits, but would we really talk about trading plans if they did not do any good and didn’t increase our chances for the win?
Trading plan equals discipline and discipline as we all learned from athletes is going to lead to to winning.
That is why stocking to your trading plan and your trading discipline is really as important as they say.