In a soccer match, all teams must set their game strategy. The ultimate goal of strategy game, in the end there is only one: WIN. In setting the game strategy, coaches, assistant coaches and players must think seriously how to score as many goals as possible against the opponent's goal and not concede.
Game strategy is like planning (plainning). But try to imagine, what happens if a soccer team does not have a game strategy? Only the origin of the game does not know how to face the opponent. Of course, the team will have a great chance of losing.
"Oohhh, I see" you think
"So what does that have to do with stocks?" Ask you
The stock world also has the exact same philosophy. When you trade, you must have a trading plan (planning in trading). A trading plan is like a strategy that you prepare in battle so you can win.
If you play stocks and don't have a trading plan, don't expect you to win (read: profit). Even if you can make a profit, it is almost certain that the profit you get is just coincidence, aka hockey.
A trading plan cannot 100% guarantee that you will definitely make a profit. I mean, by having a trading plan, it doesn't mean you won't lose again. Trading plans are created by humans (yourself) and not created by robots that can read future price movements.
In fact, as a beginner you may have to continue to mix up your trading plan, so that you can create a trading system that is good, comfortable and suitable for you. That means, you will most likely change the "herb" of your trading plan frequently.
"Then what is Bung Heze's trading plan for then?" Ask you
Why is it necessary to have a trading plan? A trading plan can direct you so that you can trade on the right track.
In other words, a trading plan can guide you so you don't get lost in trading. Get lost, for example: you buy PGAS shares. But after buying, you don't know what to do. Or you bought MAPI shares, but you don't know the reason why you bought the shares.
What's worse, you buy stocks because you follow what people say, and you don't see the technical analysis at all. This happens very often. That's why I wrote this post. By having a trading plan, you will not be easily tempted to buy "junk" stocks or be influenced by irresponsible opinions.
"Then, how do I compile, and so that I can run a trading plan well?" Ask you
Want to know the complete way so that you can create a trading plan, develop and execute a trading plan? The trading plan includes what things must be done? You can get it here: Stock Book.
