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**Source:** [https://www.investopedia.com/articles/trading/04/042104.asp](https://www.investopedia.com/articles/trading/04/042104.asp)
**Type:** #litnote [[Other/Obsidian Starter Vault(Second Brain)/🌻References/Trading]]

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- Failing to plan is planning to fail.
- Plan is essential for trading success.
> Trading plan should be written in stone, but it is subject to reevaluation and can be adjusted with changing market conditions.

- When to enter a trade?
- When to exit? 
- When to take profits out?
- Stop loss

Trading plan should have clear signals that are not subject to change. No two plans are same. It also depends on the person executing the plan. 

# Building a solid plan
- Paper trading
- Mental preparation
- Risk levels
- Do your homework
- Trade preparation
	- Set support and resistance levels. Set alerts for entry and exit signals.
- Set exit rules
	- Know your exit positions before you enter a trade
- Set entry rules
	- Your trading system should be complicated enough to be effective, but simple enough to facilitate snap decisions. 
- Keep records. Journal.
	-  Know why you lost a trade or won a trade. Know your emotions. Analyze your psychology during trading.
- Analyze performance
Treat trading as business. 
There is no winning without losing. 
The most important thing in trading is surviving.