Putting Together a Trading Plan
February 5, 2008
I recently received an inquiry about trading plans.
I’m thinking of having a proper trading plan for myself. Do you think that you can help me with that?
I’m looking for some templates and any other resources.
First of all, congrats! You’re thinking the right way. Every trader needs a trading plan.
Not to be self-serving, but I have to say that my book, The Essentials of Trading, has a whole in-depth section on the creation of your personal trading plan. In fact, it’s a strong theme through most of the second part of the book. I take that aspect of each trader’s development and path toward effective trading very, very seriously.
The thing to keep in mind is that your trading plan is a very custom thing. It’s all about you and the answers you come up with to questions like what market to trade, what timeframe to operate in, what type of methodology you use, and how much risk to take. The whole trading system implementation structure is certainly a part of it, but it’s just that – a part – and it comes from the rest.
Struggling with support & resistance and knowing what the key market levels are? Check out the Price Distribution Analysis methods I use.
Comments