Master IB Exness High Level Briliant - 90% Rebate Exness automatic transfer to account trading every day!!

Select you Language

List of Countries with the Largest Exness Trading Volume in the World

Exness Vietname Exness China Exness Thailand Exness India Exness Japan Exness Indonesia Exness Pakistan Exness UEA XM Philippines
Exness Algeria, Exness Angola, Exness Antigua and Barbuda, Exness Argentina, Exness Armenia, Exness Aruba, Exness Azerbaijan, Exness Bahrain, Exness Bangladesh, Exness Belize, Exness Benin, Exness Bhutan, Exness Bolivia, Exness Botswana, Exness Brazil, Exness Brunei, Exness Burkina Faso, Exness Burundi, Exness Cambodia, Exness Cameroon, Exness Cape Verde, Exness Chad, Exness Chile, Exness China, Exness Colombia, Exness Comoros, Exness Costa Rica, Exness Djibouti, Exness Dominica, Exness Dominican Republic, Exness East Timor, Exness Ecuador, Exness Egypt, Exness El Salvador, Exness Equatorial Guinea, Exness Eritrea, Exness Ethiopia, Exness Gabon, Exness Gambia, Exness Georgia, Exness Ghana, Exness Grenada, Exness Guatemala, Exness Guernsey, Exness Guinea, Exness GuineaBissau, Exness Guyana, Exness Honduras, Exness Hong Kong, Exness India, Exness Indonesia, Exness Isle of Man, Exness Jamaica, Exness Japan, Exness Jersey, Exness Jordan, Exness Kazakhstan, Exness Kenya, Exness Kuwait, Exness Kyrgyzstan, Exness Laos, Exness Lebanon, Exness Lesotho, Exness Liberia, Exness Libya, Exness Macau, Exness Madagascar, Exness Malawi, Exness Maldives, Exness Mauritania, Exness Mexico, Exness Moldova, Exness Mongolia, Exness Montenegro, Exness Montserrat, Exness Morocco, Exness Mozambique, Exness Namibia, Exness Nauru, Exness Nepal, Exness Niger, Exness Nigeria, Exness Oman, Exness Pakistan, Exness Panama, Exness Papua New Guinea, Exness Paraguay, Exness Peru, Exness Philippines, Exness Qatar, Exness Republic of the Congo, Exness Rwanda, Exness Saint Kitts and Nevis, Exness Saint Lucia, Exness Sao Tome and Principe, Exness Saudi Arabia, Exness Senegal, Exness Serbia, Exness Sierra Leone, Exness Solomon Islands, Exness South Africa, Exness Sri Lanka, Exness Suriname, Exness Swaziland, Exness Taiwan, Exness Tajikistan, Exness Tanzania, Exness Thailand, Exness Togo, Exness Tonga, Exness Trinidad and Tobago, Exness Tunisia, Exness Turkey, Exness Turkmenistan, Exness Uganda, Exness United Arab Emirates, Exness Uzbekistan, Exness Venezuela, Exness Vietnam, Exness Zambia, Exness Zimbabwe

5 Reasons Why a Trading Plan Fails to Generate Profits

Even with careful preparation, trading plans often fail in practice. Why does this happen? Before diving into trading, the primary step is to create a comprehensive trading plan, including entry strategies, risk-reward ratios, and other critical points. A well-crafted trading plan is expected to help traders achieve profits. However, sometimes even a good plan doesn’t go as expected. Here are the five main reasons why a trading plan fails to generate profits, according to Hugh Kimura from Trading Heroes.

  1. The Trading Plan Is Not Properly Tested For example, a trader might buy a book containing trading plans from an expert and immediately apply them. After a month, they face a 10% loss. The main problem is that the plan hasn't been properly tested. Backtesting is essential to determine the success potential of the plan. Ensure your trading plan meets three viability criteria:

    • Demonstrates potential from your strategy.
    • Boosts confidence during trading.
    • Shows profit potential through the established risk-reward ratio.
  2. Mismatch with Personal Trading Style A trading plan that doesn’t align with your trading style can also lead to failure. Different types of traders—Scalpers, Day Traders, Position Traders, and Swing Traders—have varying approaches. For instance, if you’re a Scalper who likes trading on short time frames with small, frequent profit targets, your trading plan should align with scalping strategies. If not, it won’t be successful.

  3. Poorly Constructed Plan A trading plan should be practical, realistic, and effective. Each step of the trading process needs to be detailed, including short-term and long-term plans and how to implement them. Additionally, the plan should cover risk tolerance, the best times to "break the rules," and designate "off days" from the forex market. A comprehensive trading plan can help you navigate various market challenges.

  4. Lack of Flexibility and Development Even with a detailed plan, flexibility is crucial. While discipline is important, so is adaptability. For example, if your trading plan sets specific Stop Loss and Take Profit levels, but you spot a better technical opportunity, it’s acceptable to make adjustments. Furthermore, the trading plan should be continually updated to reflect changing market conditions. Without flexibility and ongoing development, your trading plan might fail.

  5. Not Habitual The final reason for a trading plan’s failure is not making it a habit to write the plan and record challenges faced during trading. Trading activities should be documented in a trading journal that includes all trading results based on the plan. Regularly maintaining a trading journal allows you to learn from experiences and avoid repeating mistakes. Understanding the obstacles in trading and devising solutions is one of the key benefits of a trading journal.

A trading plan is designed to guide and direct trading activities. However, if the plan fails to generate profits, it’s essential to investigate the reasons. The plan may not have been properly tested, might not match your style, could be poorly constructed, or lacks the flexibility to be applied effectively. Additionally, failure could stem from not making it a habit to document the plan in a journal. If this is the case, it’s time to make improvements to ensure that profits become more than just a dream.

Share:

Popular Posts