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Chapter 29, Part I. Trading Plan Framework – Common Thoughts. Page 4

Discussion in 'Complete Trading Education- Forex Military School' started by Sive Morten, Dec 27, 2013.

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  1. Sive Morten

    Sive Morten Special Consultant to the FPA

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    Commander in Pips: Unfortunately not. But trading plan gives you the clue for understanding of your failings. Usually they divide into two groups – discipline problems or trading system problems. But to assess the latter you have to fulfill the former first.

    Discipline problems are worse than system problems since it is harder to correct them. They appear when you do not follow your trading plan - when you change it in a rush of trading day occasionally, when you do not follow it. If this is the case – you will never be able understand how good your trading system is, since you even do not execute it and change signals that it gives to you by your spontaneous feeling.

    If you follow the trading plan, then you can assess the quality of your analysis tools. Do they give you good signals or not and so on. Then it is much easier to change the trading system than to force yourself constantly follow the trading plan. This is the most difficult task for a trader.

    As you understand, if you have no trading plan at all – who you will assess the quality of a trading system as trading plan itself – you have no tools for that. I even will not talk about assessing of your performance.

    Initially, probably, your trading plan will not lead you to profits, but we might say that you will hold on the market much longer than those newbie traders who have no trading plan at all. When you start to get experience you will be able to look at your trading plan deeper, it will become sharper and stricter and so, step by step you will be closer and closer to surviving initially and then to consistent profit, if your trading system is acceptable.
     
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