Tuesday, 29 March 2011

Do You Have a Trading Plan?

At a recent Forex Mastery workshop I was involved in, the topic of Trading Plans was raised and I delved into one of my folders and retrieved my rather scruffy Trading Plan.  It is hand written on one side of a plain postcard.  It was written a couple of years ago and suffices to this day. It covers:
  • WHY I trade (My Vision of where I want to be in Life).
  • WHAT I trade (e.g. Forex/Commodities/Indices - Spot/Futures).
  • WHEN I trade the Forex markets. (e.g. The London Session)
  • HOW I trade the Forex markets - the strategies I employ and my style of analysis.
  • RISK & Money Management details that I employ.
  • REWARD to me for doing well – Salary as a % of monthly profits.
  • PSYCHOLOGY – my psychological trading profile and what I must do to improve on that.
That’s it in a nutshell!

I look at it every trading day and it helps keeps me focussed.

Note: A personal Trading Plan is different from individual Trade Plans, the latter being the plan of a specific trade.

If you need help with your development as a trader then you might consider a personal mentorship plan.

Top Trading Tip: Spend some quality time researching and deciding what you require in your own Trading Plan, it’s a personal thing and should be meaningful to you and help you become a more focussed and better trader.

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