A day trading plan is an essential part of the success of most experienced and professional traders.
A trading plan provides a detailed analysis of a particular market irregularity that you intent to pursue.
Creating a trading plan also provides both new and expert traders the ability to discard emotional responses from their trading schemes.
If you want to create a day trading plan, you should consider several factors that are essential for its efficiency and practicality.
These factors include the following: oConcept of Trading - This refers to the anomaly your trading strategy intends to pursue.
oTimeframe - This refers to the period that trades can be made.
Remember, the shorter the period, the more trades are made.
Short periods yield to lower rewards.
oEntry - This refers to the manner of opening your trade.
oExit - This refers to the manner of closing your trade.
oBrokers - This refers to which broker you choose to use and the manner of your trading.
oInstrument - This refers to the trading concept such as exchange traded funds, options, and futures among others offering the most rewards.
oEnd of Day Routine - This refers to comparing and addressing differences of trade for every end of the day.
oMoney Management - This refers to the quantity or amount of capital necessary to trade as well as the amount of risk for every trade in order to optimize returns while decreasing the risk of messing the account.
You should also consider revising your plan as needed since the market is constantly changing.