Trading plan: don't trade without it

May 21, 2016

Every trader needs a good and personal trading plan and most important: you have to stick with it.

IG senior market analyst Chris Weston gives more information in this video. "Personality and lifestyle will dictate what you're trying to do in trading. Understanding risk management and money management is essential. Where do I take my loss? Do you want to trade with a profit target? If you're a trend follower you maybe won't use a profit target."

Weston says that demo accounts are very good to understand the mechanics of the trade but it doesn't give you the emotion. "The emotion is the absolute number one killer. People will lose discipline and will lose control. How you manage emotions is absolute key."

"Keep position sizing as low as you can until you are fully comfortable", recommends Weston.

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