Essentials of Trading

When looking at Trading as a whole, one can whittle everything down to a few key essentials that must be acheived or adhered to, in order to ensure a chance of success.  A broader view can be found at this previous post on the Key Steps To Trading Success. However, the aim if this post is to really focus in on some specific things.

To start with you need a Plan, most successful people have got to the top because they have had and have then implemented a plan.  In this case an overarching Trading Plan covering all apsects of the ‘Why, What, When and How plus others’ is needed.  See my previous Blog article on Trading Plans.  Then for each trade we take, we need a specific Trade Plan, because Prior Preparation Prevents Poor Performance (5Ps).  If you have a Plan then at least it can be modified, if needed, but without a plan you are onto a loser from the start. Continue reading