Do you believe in using a Trading Plan?

[DaveT]

Profit and loss targets. The point of the trading plan is to not get unexpected trading results in future so you won't experience mental discomfort from loss or excessive enthusiasm from profit. This will keep your emotional state stable = less trading mistakes, wrong entries and exits.

I don't think you should have profit and loss targets. This puts unnecessary pressure on yourself. You should just ensure you always make the correct decisions.

 

[JamesForexSlayer]

I don't think you should have profit and loss targets. This puts unnecessary pressure on yourself. You should just ensure you always make the correct decisions.

I agree. Take Profit and Stop Loss on trades but targets could make you overtrade.

 

[momo3HC]

I agree. Take Profit and Stop Loss on trades but targets could make you overtrade.

Yeah Forex is not a targets oriented.

 

[RachelEB]

having a plan and trading the plan is the best way, and often overlooked as a new trader i feel.

Preparation and planning can save you a lot of hard lessons down the road!

 

[MikeMike]

I don't think you should have profit and loss targets. This puts unnecessary pressure on yourself. You should just ensure you always make the correct decisions.

Interesting opition. Imo, you need to have a trading plan to limit your losses and shapen your strategy.
For the majority of trades at least. Or at least some rules.
How do you trade?

 

[MikeMike]

I don't think you should have profit and loss targets. This puts unnecessary pressure on yourself. You should just ensure you always make the correct decisions.

Or you mean Forex trading only?

 

[momo3HC]

Interesting opition. Imo, you need to have a trading plan to limit your losses and shapen your strategy.
For the majority of trades at least. Or at least some rules.
How do you trade?

Yep. i`m also interested in that.

 

[DaveT]

Yep. i`m also interested in that.

I trade robotically and emotionless. If I lose 10 trades on the bounce I don't care as long as I made the correct decisions when placing the trades. I know in the long run that my winning strike rate will materialize and put me into profit. I can have losing weeks and losing months. If I had daily/weekly/monthly profit targets and I went on a bad run I'd have to start forcing trades to play catch up. When you force trades you are trading emotionally and inevitably will take on more risk and this will reduce your strike rate and profits.

 

[momo3HC]

I trade robotically and emotionless. If I lose 10 trades on the bounce I don't care as long as I made the correct decisions when placing the trades. I know in the long run that my winning strike rate will materialize and put me into profit. I can have losing weeks and losing months. If I had daily/weekly/monthly profit targets and I went on a bad run I'd have to start forcing trades to play catch up. When you force trades you are trading emotionally and inevitably will take on more risk and this will reduce your strike rate and profits.

Sure. Forcing yourself and your trades is surely a bad habit.

 

[kwasik]

You have to have a plan. Without a plan you'd be shooting darts all over the place.