Forex Traders need a trading plan because it describes the type of a trader they are. This helps focus on your trading objectives. Because with a trading plan, you know exactly what to do, when to do it and what to expect from the market.
1. A trading plan helps you to manage and spend some time profitably. You spend less time analyzing charts.
Because this becomes a routine in your trading, it gives you less stress to trade and you’ll schedule some time alright and feel comfortable.
2. It is only when you have a trading plan that you can take clear records and journal for your trading system.
The records will assist you means the common mistakes while trading and be ready to improve them.
3. A trading plan also helps you to trade consistently. When you write down rules to trade, you’ll find it hard to interrupt them. Because that’s what you think in, you’ll a minimum of attempt to convince yourself that it’s the wright thing to try to to .
As you are doing it over and once again , It becomes a habit. You now know what to try to to and the way profitable your strategy is. You also get conversant in the market, measure your strategy’s performance and become more confident to trade.