In this article, we will talk about the basic document that every binary options trader should have-a personal trading plan. Despite the fact that without a plan you can not trade traders do it. Also, the newbie does not see the difference between the trading plan and the rules of the trading strategy. We will try to convince you once again of the importance of trade planning.
Each trader before starting trading must have four pre-written documents in electronic or printed form:
The required elements of any trading plan are listed with examples. Do not forget that these are only examples, for each trader they will be individual based on the strategy, their views on the maximum risk and the market as a whole.
Actions in force majeure
It is necessary to describe in detail and take in advance measures in case of a critical situation: no electricity or internet, software failure, etc.
Basic set in case of force majeure: in addition to the main computer should be a backup laptop, tablet or smartphone with the necessary software and 4/5G-modem, VPS-server, a list of the nearest free Wi-Fi points where you can quickly access the Internet.
Profit and loss control
In addition to money management parameters, it determines what to do with different profit values: large, medium, small. Separate actions for several losing trades in a row! The section is individual, depends on the style of trading and the values of maximum risk. Examples:
When you can’t trade
Under what conditions of trade there is no: after a sleepless night, in a sick state, depressed or very optimistic, etc.
Conditions must always be observed and not try to deceive yourself. This will only lead to losses, brainwork differs from physical - constantly to work at a limit it will not turn out.
Conditions for choosing a trading strategy
When using multiple trading strategies of binary options, specify under what conditions they apply. Examples:
What information and from what source will be used for market analysis. Examples:
Short and long term trading tasks
Always remember why you started binary options. It helps to return to reality (why open ten binary options signals a day when the planned 10-20% per month has already been earned) and to find the strength to continue in times of failure.
Other on your choice
Favourite quote or rule "don't open the chart more than three times a day," "don't trade when it's raining in the morning", etc. Write everything that will help you tune in to trading, even if it is a sign of superstition. Trading is a difficult thing and any little thing can help or bring out of normal condition.
Always keep the trading plan in front of you in paper form. And always follow it thinking how binary options signals work.