Starting the trading without building a trading plan is worthless. Here are 20 points for building a trading plan:
- I need to figure out what kind of trader I’m going to be. It all depends on what kind of trader you are and what kind of market you want to be in.
- How often will I trade?
- What are the rules I use when I trade?
- Is there a sign that I’m coming?
- What will be the signal for me to leave?
- To make sure I make money, do I use a trailing stop or set a price goal?
- I’m going to trade something.
- Go long or short. Or do both.
- Based on historical data, how likely is it that my trade will work out?
- What must happen for my trading system to be useless and for me to start looking for flaws in my own reasoning to start?
- In my mind and in my heart, how big of a position can I handle?
- It’s important to make sure that the trading method I’m using is right for me.
- Is that true?
- Is trading fun for me?
- Do I have the mental strength to keep going until I make money trading?
- When I trade, how much of my trading capital am I willing to lose on each trade?
- This level of risk: How many losses in a row at this level of risk will cause my trading account to blow up?
- How much money will I lose at once if all of my open positions go against me?
- How close are all of your open positions and the vehicles you’re keeping an eye on to see if they could work together?
- Do you fully understand the risks of the trade you’re making?
Keep these Points For Building a Trading Plan.
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