I was on a live coaching call with our Inner Circle members when I was asked this;
What’s a trading plan and should I have one?
What Is A Trading Plan?
Firstly, here is my simple definition of a trading plan.
It is a simple document, which details;
1. your mission and purpose for trading and investing,
2. your goals,
3. your daily routine and actions,
4. your risk management criteria and position sizing rules,
5. your trading and investment systems and your market analysis.
Trading Plans Are Not For Hobbyists
For those who want to treat trading like a hobby and something you can do in your spare time after work when you feel like it so you can tell people you are a ‘trader’, please don’t pursue this endeavour.
It will be costly. Not only will you not get the results you anticipate, your entire account is likely to become nothing.
You are better off getting your excitement elsewhere.
For those who want to treat it as serious business, I am here to help because trading with your trading plan is like running your own business with your own business plan, except there are no bosses to report to, and no employees to manage.
Your trading plan, like everything else in life will evolve over time, as you become a better investor and trader.
Where most go wrong, including me is that they try too hard to perfect their plan thinking this will be the ultimate end document throughout my whole trading career. It will not be.
So don’t get bogged down into all the nitty-gritty details, as this will only slow down your progress of actually placing real funds into the market, which is the ultimate teacher of all.
Let’s Start Creating Your Trading Plan Together…
As mentioned above, the 5 components of your trading plan are:
- your mission and purpose for trading and investing,
- your goals,
- your daily routine and actions,
- your risk management criteria and position sizing rules,
- your trading and investment systems and your market analysis.
For many of you, answering the first 2-3 components is quite simple and straightforward, especially if you are an avid reader of self-help books and are already attuned to life goal setting and understanding your goals from a big-picture standpoint.
For most people, however, components 4 and 5 is where they are the most stuck.
And yes, while there are many books and seminars available on those topics out there, if you were to try to read and apply them all, you would end up very confused.
That’s why, I’d like to invite you to attend my FREE 90-minute upcoming online masterclass called “How To Predict Any Market Crash, Protect Your Wealth and Profit Safely“.
It covers my 3-step Profit With Protection™ system, so you can glimpse into the future of the market, figure out when to time your market entry and exit (using my simple ‘traffic light’ system), and analyze stocks using the 4 financial figures that matter the most.
It’s a highly interactive class complete with your own downloadable workbook, and I guarantee you’ll walk out of the Masterclass with a completely different filter of the trading and investing world.
If you’d like to join me, book your spot here, and I’ll see you on the other side.