Follow a good trading plan to reduce the risk in Trading

Follow a good trading plan to reduce the risk in trading


As a trader you know the importance of risk and reward. Risk and reward is directly proportional. More risk means more reward. Actually risk is the sum of your work that you did or plan to do for your trade. The risk is determined by the terms of stop loss order. The difference between your entry point and your stop loss order is your risk in trade. Here a common question will arise in the mind of many. How can you calculate your risk and reward ratio? It is simple by placing the stop loss in a logical way in your chart according with your strategy. Keep one thing in your mind. Don’t choose your stop loss and target randomly. If you choose them randomly, it is dam sure that you will be in loss. That’s why the experts or the professional traders take more care in their execution in putting stop loss and targets because it can determine your profit. Then why should you lose your gains due to your careless?

So if you need to make profit in your trading you must follow a proper strategy. Which is favorable for you? Only a proper plan can make you in profit. Where should you enter and where should you exit is very important in trading. A good execution can make better income in trading. Your approach towards trading is also important. Here you should have clear idea about where and why you putting the stop loss and targets. But you should make sure that your strategies are moving with the movement of the market.

So you should have a proper plan in trading. Here you will find a way to execute your trading plan. Then you will get professionalism in trading. In many cases people have over fear or over greed towards their trade it is not good. The fear will hold you from your all movements in trading. The same thing will happen in the case of over greedy trading also. In such cases you become blind and unable to make your proper entry and exit in your trade. Here you can’t find the right time for your entry and exit. Obviously the result will never favor you. So make sure that you have a proper entry and exit in your trading. There is no chance for miracle in trading. Whatever the things happen in your trade is only the result of your hard work. So it needs a dedication and your time.

In trading it is very necessary to make out the stop loss and target properly. Otherwise, you can’t be admitting if there is any reverse trend in trading. First, you have to teach your mind how to admit the reality but at the same time expectations should be need but over expectation will pull down you in a trouble. That means you will be unable to suffer the reverse result that happen in your trade.

Here I have one thing to tell to you make your trade risk free. There is only way to make a risk free trading is put proper stop loss in your trading according with your strategy. Don’t forget to modify your target. Make up your mentality also necessary for trading. So make plan and try to make your plan real.

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