To earn steady returns from stock trading a stock trader needs a trading plan. There is no standard trading plan which can be used by all. Each trader will have a different approach to trading and plans that are suitable to his method of trading. A stock trader needs to work on this to create a trading plan that is suitable to him. It needs a lot of home work. Most traders identify shares and study their past price trends. Based on the trends they work out and back test different trading plans. They identify out of that the best ones. The plan that gives them the maximum returns.
The Trader Business Plan - ebook.
Click to download. It is free.
The market trends never remain the same. They keep changing.
1. A Bull market trend - market is rising
2. A Bear market trend - market is falling
3. A flat trend - where the market moves within a band
What I realised is, one single plan doesn't work for all these three conditions. We have to have three different plans for each of them.