Etoro trading plan helps every eToro profession trader to be objective, disciplined and patient trader. The best thing is every trader has had his or her own trading plan. Trading plan is useful for each trader and it sets guideline in the trading market. It is a trading strategy which you use and reflects how you as an eToro professional decide when about the best time to enter the market.
Many traders are emotional and open trades on the base of emotions. It is eToro that makes you able to open trades with objective decisions and logic, without emotions. It makes you understand the trading strategy in order to make you profitable. The trading plan of eToro is not just a simple useful and static tool for trading, it is refined and updated with all details for trading. Let’s see eToro Trader improvements.
Formation of Personal Trading Plans
Every trader in the market has his own personal trading plan; it is very easy to follow. A long term trading plan might be hard to follow. As an eToro Trader you can build the trading plan into three parts.
I. eToro Trader Profile
II. Risk Management
III. Trading Strategy
Each trading plan’s part has some important component. Here I explain them:
EToro Trader Profile
? What kind of daily affirmation gives you motivation?
? What does motivate you to become an eToro Trader?
? Which currency pair do you trade daily?
? What trading goals have you set?
? How much your time spends for developing trading skills a week?
? How much profit you expect monthly?
? How do you behave toward risk?
? How much you ready to lose, stopping the trades?
? How much risk you can afford per trade?
? How much of drawdown is acceptable for you?
? How would you manage a currency exposure portfolio along with risk and multiple open trade?
? Which main timeframe do you use?
? Which method of analysis would you use to see the entry, exit levels?
? What’s your prospective entry setup?
? How would you determine stop loss points?
? What would be your strategy for profit taking?
? Which condition will be signal of entry point?
? Which condition will signal of exit point?
Usage of Personal Trading Plan
Each eToro Trader knows well that without the personal trading plans his or her ability to earn money gets reduced. Trading plan provides a strong support for trading strategy and refines every action, reduce emotional trading as well as increase the number of successful trades. It allows each eToro trader restrain from confused and less gain trading.
Usually traders make following mistake:
They do not build their personal trading plan and think they can plan each action, when the need would arise. It is a wrong perception, because it’s not possible to be confident in every situation about the market.
Many traders make trading plan but never use them, it is just wastage of time, if you do not get benefit from the trading plan which you built, and you would lose the opportunities to improve your trading.