If you've ever traded Forex in search of a better life, you'd know what a trading plan is.

For others, a trading plan is a set of rules with detailed entry and exit points, as well as stop losses and take profit points. Basically, a trading plan tells you when to do everything.

These are extremely important in the world of Forex, but are they all that relevant in the crypto world?

Well, yes. Yes indeed.

Here's something I'd like you to do. Create a trading plan. It's really easy to do. Just write down the conditions that will determine your entry, exit and where you take your profits. Forget stop losses for now.

Now, use a free demo account on Bybit to test out this strategy. Make 25 trades, and count your winners and your losers. Make sure to follow the plan to the teeth.

If you have more winners than losers, congratulations you have a great plan.

You'd also have found that you would have missed a few big moves. Really huge moves. WHALE moves.

What a trading plan does in the Forex market is that it helps you maximise your captial while reducing losses.

In crypto however, a trading plan serves to protect your capital against downturns, and not really help you catch those pips.

That's why I feel everyone should have a trading plan if they wish to trade $10000 in the crypto markets. It wouldn't be really fun to long on a trade at noon only to see your 10k investment at $30 the next day.

That said not everyone uses a trading plan. I once did an experiment where I risked $10 trading by instinct. My $10 became $15. I was ecstatic. But I remembered that the market rewards lack of obedience and diligence, and punishes diligence and obedience. My trading plan helps me weed out the fake moves, but doesn't really multiply my money like the crypto market should.

But my capital is safe. I can go to bed everyday without worrying that my stop losses will run. Because I have a great plan.

And you should too.

Thanks for reading!