The Required Elements for Your Trading Plan
March 12, 2008
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John Forman - The Essentials of Trading author
Now that we’ve gone through the personal trader assessment process as the precursor to developing your trading plan, it’s time to move on to putting a shape and structure to that plan (continuing to excerpt from The Essentials of Trading).
Now that we have gone through the assessment process it is time to take that information and awareness to the next step—forming the actual Trading Plan. Our plan must account for a number of things:
- Trading Objectives
- Market(s) and Instrument(s) traded
- Trading Time Frame(s) utilized
- Software, Hardware, and other Tools required
- Amount of Risk Capital put in to play
- Broker(s) and/or Trading Platform(s) used
- Risk Management strategy
- Trading System(s) employed
- Trading Routine
We will cover each of these elements of the Trading Plan briefly in the next few posts, with the exception of the Risk Management and Trading System sections which are much more expansive. They are left for seperate discussions.
Here are some other posts which might interest you:
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