The crypto market is full of randomness; without a plan and rules, you will inevitably be completely exposed to risks. A clear trading plan is not only the foundation for profit but also the only barrier against emotional trading.
Why is planning more important than predicting?
Listen to A Yu tell you:
1. Predictions are uncontrollable, plans can be implemented:
Market conditions are unpredictable, but personal actions are controllable. A plan is the only "certainty anchor" in an uncertain market.
2. Lack of planning leads to emotional trading:
When the market fluctuates, a lack of preset rules can easily lead to being swept away by fear and greed, resulting in irrational decisions.
3. Plans are the foundation for review:
Without a clear plan, it is impossible to objectively evaluate the correctness of trades, let alone optimize and improve.
How to formulate a high-quality trading plan?
1. Define entry conditions clearly:
For example, a price breakout at a key resistance level with corresponding increased trading volume; or a clear bullish signal from fundamentals.
2. Set stop-losses in advance:
Before opening a position, determine the maximum acceptable loss; once the stop-loss point is written into the plan, execute it unconditionally.
3. Set goals and take profit:
Define target prices as exit criteria, use a phased take-profit strategy to lock in profits while retaining upside potential.
4. Record the execution process:
Keep a detailed record of the execution of the plan to provide a basis for future reviews and optimizations.
Common mistakes to avoid:
1. Temporarily modifying the plan:
Arbitrarily adjusting the plan when market conditions change is equivalent to having no plan from the start.
2. Vague planning:
Statements like "If it feels like it won't go up, sell" are not actionable; conditions need to be quantified and clarified.
3. Ignoring capital management:
A quality plan not only includes market logic but also integrates position control and risk management rules.
Although the market is unpredictable, rules can be steadfast. A plan is not a constraint but a prerequisite for calm trading; rules are not limitations but armor against market chaos. True trading experts do not always make correct judgments, but even when they make mistakes, they can rely on plans and rules to protect their capital and retain growth potential.
May you not be blind or impulsive in your future trading; may every action have a trace to follow, and every move have a principle to rely on.
