Intro To You Trading Plan Flashcards
What is a trading plan?
Rules and guidelines that govern your business.
Covers what is supposed to be done, when where and how.
What is included in a trading plan.
Trading routine
Financial goals
Money management rules
Trade Management Rules
Systems and Criteria
Trading Style
Why do I need a trading plan?
Business Plan
Drastically reduces risks
Curbs emotion
Structure
Progress Measurement
Intense trading time
Goals
A trading plan:
Helps you to become consistently profitable when followed
Good wins vs Bad wins
Good losses vs Bad losses
Good win followed the plan and won
Bad win didn’t follow the plan and won
Good loss followed plan and lost
Bad loss didn’t follow plan and lost
Start with your why
Statement of why you decided to be a trader
Who will hold you accountable to your plan
Get to know yourself
What is my attitude towards risk
How much time do you have in a day to trade
How comfortable am I at holding a trade
Consistency and discipline are key
Do the same thing over and over
