There are two very simple reasons why you should use a trading plan. First, it clarifies exactly what you should do and when you should do it. Second, it helps you to avoid unnecessary losses. If you're new to trading, you might be surprised to see phrases like 'plan your trade, trade your plan' and 'keep your losses to a minimum.' These bits of advice may appear to be distractions to new traders. When you're new to trading, you'll just want to know how to hurry up and make money. Each of the following rules is important, but when they work together, their results are powerful. The following rules can greatly enhance your chances of success in the market if you keep them in mind. You should adhere to your trading plan as closely as possible in order to be successful. Although profitable trades taken outside of the trading plan would normally be considered poor strategy, following the trading plan is critical. You must approach trading as a full- or part-time business rather than as a hobby or a job. As a result, it will be difficult to succeed if trading is approached as a job. There is no regular paycheck if it's a job, so it can be frustrating. To be successful, trading must be approached as a business.
