Trading Plan & Journal

Trading Plan

A trading plan is a systematic approach to identifying and trading assets based on a variety of factors such as investment objectives, risks, and time. A trading plan outlines the methods and circumstances for searching for asset classes and executing deals.

A trading plan’s fundamental parts include, among other things, the conditions under which to purchase and sell shares, the size of the position to be taken, how to manage positions, and the types of assets to trade. Traders should not risk funds until a trading plan has been devised, according to investment pros. The strategy, as a written document, is often based on research to assist traders in avoiding probable and common trading hazards.

Trading Journal

A trading journal keeps track of your deals, and their results, and provides an overview of your trading history. It is not, however, a brokerage account statement as one can discover the justifications for selecting or eschewing a trading plan.

Each successively completed trade is systematically planned, and the performance of each trading strategy can be tracked in a trading log. Using a trading log, you may effectively evaluate the possibility of a specific deal regardless of how the market behaves.

Download the PDF that contains both documents

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By: Aaron Valley | From: Cheetah Investors