Everything needs planning, planning and then moving, especially trading, so what should be included in a good trading plan? Tian Eye Jun summed up, a good trading plan is roughly divided into six points, the six points are: analysis of ideas, approach, profit stop loss, position, risk point, reconfirmation. Next, Tianye Jun will explain these six points one by one.

1. Analyze ideas

In general, at the beginning of trading, most people judge the market by feeling, but this certainly does not work, if we want to judge any period of the market, we need to have a complete analysis of ideas, rigorous judgment logic. Because that's what stable trading is all about.

2. Approach

Entering the market is to form an opportunity after the market analysis is clear, and then plan the way to enter the market and the approximate position of the approach, the approach is divided into left side trading and right side trading.

3. Stop profit and loss

Generally speaking, the general principle of stop loss and stop profit: in a long market, the stock price is running in an upward trend, and the loss and profit point can be set below the key support point; In the short market, the stock price is operating in a downtrend, which sets the loss and profit point above the key resistance point. But this method has 100 Settings for 100 people. Again, having these positions planned from the beginning will allow us to know what we need to do when we execute the plan.

4. Location

Is to set their own position according to their own stop loss level, and also to control the possible loss within their own tolerance.

5. Risk points

It is to think about some things that may cause risks when we execute the plan, in advance, such as whether there will be some news that will cause sharp fluctuations in the market when we hold a certain variety, such as interest rate resolutions, non-agriculture, etc., or whether we have enough time and energy to pay attention to the trend of the disk when we execute the plan. You have to figure out how to deal with these situations in advance.

6. Double check

After completing the first five steps, it is necessary to confirm again whether to implement the plan, and if it is necessary to confirm again that there is no missing place.

Sum up

The above is the complete trading plan, if the traders can strictly implement the above process, then the mistakes often made in trading such as carrying orders, blind heavy positions, retaliatory transactions, etc., will be greatly reduced, so that the development of a good trading plan can allow us to enter the market without panic, position without surprise, start and finish.