Posted by: joetradingplace | May 7, 2012

Trading Plan

Trading is a business, so it should be treated as one…like any other business, the first thing you need to do before yu place a single trade is to have a business plan. A Trading/BP is a complete set of rules that covers every aspect of your trading life. For those without a business plan, there is a template of a BP.

INTRODUCTION
Why do yu want to be a trader? etc
MISSION STATEMENT
PERSONAL GROWTH GOAL
Explains how yu will proceed to the next level as a trader, either by reading books, seminars etc
FINANCIAL COMMITMENT
How much is your starting capital….Pc costs, broadband, screens etc
TIME COMMITMENT
How many hours yu be willing to sacrifice to your trading career?
RECORD KEEPING
How will yu record all your trades and mistakes
MARKETS, INTRUMENTS TO BE TRADED
What markets suits your investment agenda?…
TRADING PLAN METHODOLOGIES
How are you going to trade…either technical…fundamental..price action…reading the tape etc. Your trading method should be very precise….I buy/sell when XYZ happens, my SL is at Z, my targets are at Y…what timeframes are yu going to use etc
RISK & MONEY MANAGEMENT
How much you will risk per trade/per day/ etc…how you will take profits
COMPENSATION
How much yu will pay yourself per month/per quarter/per yr
TESTING & DEVELOPMENT OF STRATEGY & MM TACTICSResearch and Developement

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Categories

%d bloggers like this: