If you do not have a guide – you will be driving around in circles and you will either lost a lot of time at best or even will not reach the point where you want to get to. Trading without a plan is the same as a trip in Forex jungles or desert without a guide. In such case you will hardly reach a desirable oasis called “Consistent profit” and probably find yourself in loss. When you do not know where you’re going – in the right direction or not, your trading account probably will not carry this and blow up. Pipruit: And how will a trading plan help me to understand whether it is the right direction or wrong? Commander in Pips: Using a trading plan you will be able to assess your performance on a continuation basis. Even more, you will be able to catch the reason if something goes wrong. Besides, if you do not want become neurotic you better think about a trading plan, since it strongly reduces your psychological pressure and stress. Also, if you remember when we’ve discussed some psychological trading basics we’ve said that gambling and trading have nothing common with each other. I have to make a single exception to this statement – trading without a plan is gambling. Pipruit: And why? Commander in Pips: Look, trading without a plan suggests, that you will make trades occasionally by emotion, in better case by third party signals of unknown quality. You will be change your mind when the market will suddenly jumps for 10 pips in some direction. When it will do it in other direction you will feel that you probably were wrong and change your mind. When you will hold a losing position and see that loss increase day by day – this will press on you hard, you will not be able to think, your mind will be close to other trading ideas, you can’t sleep at all. The point is that after all you will have just hard work – no profit, no experience. You will become thin and crushed emotionally. You will get lucky if you save some part of your initial account. Is this what you particularly need? Pipruit: Absolutely not, but if I will have plan, then I can count on opposite issues? Is it a guarantee of success?