According to my point of view Its important to understand that your trading plan is not simply a set of rules that you think will work or a list of set-ups that you are somehow fond of, of someone elses plan. A good trading plan is one that you have researched, tested on historical data, tested in a live market and evaluate at regular intervals.Trading is an active style of participating in the financial markets that seeks to outperform traditional buy-and-hold investing. Rather than seeking profits from long-term uptrends in the markets, traders look for short-term price moves to profit in both rising and falling markets.