In this week's Tip of the Week, where TopstepTrader's founder and CVO Michael Patak shares one of the most important lessons to any trader. Make. A. Trading. Plan.
Trading plans are critical to any trader's success. They require that you put in thought ahead of actually opening up your trading business (aka live trading). In Michael's first trading plan, he wrote down what products he was trading, his daily loss limit, his target profit and what he was going to do with the money he made. That last point may be unique to Michael, but he believes that you should always connect your work trading to real life. That will stop you from risking too much in any one day or letting profits slip into losses.
Here's Michael's take on why every trader should have a plan.