Why do we need trading plans to begin with?

Why do we need trading plans to begin with?

Imagine living with no eyes.

You would be blind, right? You would have absolutely no idea where to go and what to do. Well, think of trading plan as your eyes in the world of trading. It is going to guide you through all of the uncertainties, all of the ups and downs of your trading day and it is going to be your primary trading tool for a long time.

When do we need the plan the most?

Well, I would argue that the best time to have a trading plan is the very beginning. It is said that in the very beginning we all suck. And let’s admit it – it is true. Just like at driving.

Remember the first time you sat behind the wheel? You sucked, right? You didn’t know the road and your concentration was all screwed up. But after a couple of weeks you were just fine, weren’t you? Well it is going to be the same in your trading if you use a trading plan.
And yes, yes. I know – making up a trading plan is only going to take your time and take a chunk of your possibility to trade. But do not worry. This is not the time wasted, I assure you. It is a time for you to get all of your will together and just work.

Remember, 90 percent of forex traders never make it. They simply quit. Why? Well, because they fail of course!

With trading plan your chances not to quit are growing quite hard. And the more time you spend on your plan the more chances there are that you are going to become a part of that 10 percent golden club.

So that is why we need trading plan to begin with!