Have you ever wondered what separates professional traders from novices? Professionals have a plan—and they trade according to that plan. With novices, it’s hard to say how they trade; their approach isn’t objective or systematic enough to document. One thing is certain: they lose a lot of money. So, what is a trading plan that professionals use? It may be hard to believe, but there are many different plans for becoming successful in trading. The important thing is to have a plan you can follow—one that is practical and fits your lifestyle. Whether it’s trend following, momentum scalping, arbitrage trading, or a technical or fundamental approach, your trading plan must suit you. A major reason why trading systems look good in computer backtesting but perform poorly in real-time is that the trader lacks the discipline of a computer to execute the same plan consistently, day in and day out.

To be successful in trading, it’s important for a trader to operate like a machine when executing trades. If you’re willing to work with that level of discipline, the next step is to develop a solid set of rules for your trading plan. These rules should answer all the questions that may arise while trading, such as:

When to Buy and Sell ?

What to Buy and Sell ?

What market to trade in ?

What quantity to be traded ?

How much capital should be there in trading account ?

When to roll over in case of F&O trading ?

These questions could be answered in different ways. But make sure your trading plan answers all these questions in some way before you deploy that plan for live trading. If you do not want to go through that pain of creating a plan from scratch, then we present TrendShikari NTS and our example trading system for your consideration.