Do You Have a Trading Plan?

If NOT ...

Take Note!

A trading plan is an essential tool if you want to be a successful trader.

Preparing your trade ensures you take advantage of opportunities while preventing catastrophes. I believe that preparing a complete plan before entering any trade is mandatory. Devastating losses usually happen to traders who fail to plan.

Traders who fail simply don’t know what they want or how they are going to get it.

A trading plan is your blueprint to success. It should include your objectives, procedures, and most of all, your trading system.

A trading plan MUST be written down.

Most of all, a trader must have the discipline to stick to it.
The plan must contain:

• What market are you trading in? e.g.: equities, ASX20. ASX100,all of the ASX,
• Your Entry signals
• Your Exit signals
• Your Risk Management
• Your Money Management

Consider the difference between a trader who answers these questions (plus more) and one who does not. It makes sense that the better prepared trader will make fewer mistakes. He will also enjoy a greater percentage of wins.

In a sense, this process allows you to come up with your own winning system. With a little experience you will put together a fool-proof system that delivers the good results you deserve.

Treat your business of share trading with the importance it deserves. Why risk your money, if you do not want to treat it as a business. Suppose you were to purchase a business trying to create an income and life style for your family. Would you not take the time to assess every detail necessary to succeed? I am sure you would.

Share trading gives you the chance to create a life style for you and your family, a life style to give you the opportunity to really enjoy life.

So sit down now and create a plan to give you exactly that.

Clearly write out your goals.

Are you trying to create more disposable income?

Do you want to increase your retirement funds?

Are you trading for fun and excitement?

How much time will you spend per day carrying out your business?

Are you psychologically prepared to be a share trader?

How much capital do you wish to allocate to your trading plan?

How much risk can you tolerate?

Will you be day trading, medium term trading, long term investing?

Consider the difference between a trader who answers these questions and one who does not. It makes sense that the better prepared trader will make fewer mistakes. He will also enjoy a greater percentage of wins.

Now let us look at a sample trading plan. But remember, your trading pan is your own, personal plan. Do not copy somebody else's plan. Modify it to suit your own style. You have to follow it to the minute detail, you have to own it.

Ok, here is a skeleton plan.

• I will daily search my target market for entry signals
• My scans will be as follows:
• My entry signals are:
• I will open a trade as soon as all my entry signals are in place
• I will size my position according to (my money management plan)
• My exit signal will be:
• How do I set my stop loss
• I will exit when my stop loss is hit.
• I will record my trade in my trading diary.

Note: these are the minimum steps you should enter in your plan. Be specific, describe your entry and exit points in detail. Your trading will then become mechanic, cutting out emotions.

As time goes on and you become familiar with your plan, you can start to refine it bit by bit. But give it a chance to work first.

Should you need guidance to set up a proper plan see my mentoring program. On the other hand, there are many books written to help you to prepare a successful trading plan.

Give it a go, it will be worth your while.

Don't hesitate to email me with any questions.

'Disclaimer: The website is intended solely for information purposes and is not to be deemed a prospectus or a solicitation of orders. The opinions are those of the author only. It should be noted that some of the stocks may have very low levels of liquidity and may result in significant percentage rises and falls. I am not a Registered Investment Advisor. Please conduct further research and consult your financial advisor before making an investment/trading decision. I may have direct/indirect holdings in the stocks listed/mentioned. My holdings may change without notice. The information on each stock has been derived from publicly available reports. Each of the stocks listed is to be considered as speculative, and may not be appropriate for individual investors. I am not responsible for any losses which may be incurred. Any financial product information contained in this website is general information only and has been prepared without considering your objectives, financial situation or needs. Before making any investment decision you need to consider whether the advice is appropriate for you. We are not licensed financial advisors....

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Introducing the Ultimate Trading System.

Here are just a few of the things you will discover inside this manual

How to quickly and easily get started trading profitability.

3 critical components all profitable trading systems must have.

The secret to mastering your discipline, confidence and psychology.

How to best enter and exit your trades.

What tools the professional traders use.

How to prove your trading systems works, before you trade it.

How to maximize your profits and minimize your loses.

How to trade part time but make full time profits.

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