A trading plan is your rule book that outlines what, when, why, where of trading. You create your rules with detailed trading activities and follow it every single day. You must have a trading plan for successful trading.
Following should be part of your trading plan – customize it to your needs. Read your plan before trading each day.
- Start with a positive quote or something that gets you motivated and excited
- Daily trading goal
- Daily trading strategy
- Time Window Strategy
- X-Y-Z goals
Below is a sample trading plan:
I can’t change the direction of the wind, but I can adjust my sails to always reach my destination – Jimmy Dean
Daily trading goal: $150.00 per day
Daily trading strategy: Buying qualified support and selling qualified resistance after strong buying/selling signals are presented by the market. No overnight positions.
- Price range $10 to $50
- Volume minimum 1,000,000
- Swing Trend: Closes above/below swing points
Time window strategy: Two trade per hour on average with the goals of trading for 3 hours per day and hitting or exceeding the daily dollar goal.
- $150 per day
- $750 per week
- $3000 per month