In this post, I will answer a question regarding how to setup a trading plan. This is a very important question as it is something that I strongly believe every trader should have.
Below is the question
How do you prepare a trading plan, and what is in your trading plan?
How often should you enter a trade daily?
Which is the best time to trade?
In a trading plan, you need to specify the indicators that you are going to use and what signal should you see before you trigger an entry.
If you are trading breakout, your trading plan will specify that you should see a Bolling Band squeeze and you need to see certain candlestick pattern formation.
You also need to know what time frame you are going to use for your trading.
Besides your entry signal, you also need to specify where exactly you should place your stop loss and where you are going to exit your position.
For me, I will also specify when I should shift my stop loss to lower my risk as this is part of a trade management.
As for your question about the frequency of my trading, I place about 2 to 3 trades every week as I strictly stick to my trading plan. As long as there is no setup that is exactly matching my plan, I will give it a miss.
As for the best time frame to trade, I personally feel that the 15 minutes chart is the best.
What do you think is your best trading time frame?