Do You Have a Trading Plan?

At a recent Forex workshop I was teaching at, the topic of Trading Plans was raised and I delved into one of my folders and retrieved my personal Trading Plan.  It was written several years ago and suffices to this day. It covers:

  • WHY I trade (My Vision of where I want to be in Life).
  • WHAT I trade (Forex/Commodities/Indices – Spot/Futures).
  • WHEN I trade the financial markets.
  • HOW I trade the financial markets – the strategies I employ and my style of analysis.
  • RISK & Money Management details that I employ.
  • REWARD to me for doing well – Salary as a % of monthly profits.
  • PSYCHOLOGY – my psychological trading profile and what I must do to improve on that.
  • TASK – My Current ‘area of improvement’ I am working on.

That’s it in a nutshell!

I look at it every trading day and it helps keeps me focussed. It should be a living document and updated as you progress.

Note: A personal Trading Plan is different from a Trade Plan, the latter being the plan of a specific trade.

If you need help with your development as a trader then you might consider a Personal Trading Mentorship Programme.

Top Trading Tip: Spend some quality time researching and deciding what you require in your own Trading Plan, it’s a personal thing and should be meaningful to you and help you become a more focussed and better trader.