What is a trading plan?
A trading plan is a simple document you have created to guide your trading journey everyday. It’s your rule book for successful trading. You have to create your own trading plan for the true north in the stock market. Keep it simple, and more importantly follow it rigorously. This should include your investment goals, risk tolerance, and the types of stocks you’re interested in trading. It’s also a good idea to set clear rules for when you will enter and exit trades.
Include the following 6 easy steps to craft your trading plan. Perrsonalize it to your trading/investing style.
Sample trading plan
In every trade lies great possibility to grow wealth. Build a strong trading foundation by downloading the above trading plan and personalizing it for your trading. Monitor the stock market regularly. This will help you to stay up-to-date on market trends and identify potential trading opportunities.
A critical aspect of trading that is often overlooked by most is managing risk i.e. losses. It’s against human nature to lose or even think about losing. We live our life in the realm of winning all the time. And that is how it should be. But in trading losing sometimes is as good as winning. Therefore, you should have a good stop loss strategy as part of your winning trading plan.
This hit the hammer right on the nail. Well done. Trading plan is the single most aspect of trading that separates boys from the men. If anyone is serious about making a career in trading should follow a trading plan. The one above is a good start.
Hi, I have seen many trading plans before. This one is simple and gets straight to the point. It’s not always easy to follow trading plan when trading, but when done correctly, returns are immense.
Is your plan for day trading only?
Hi Joshua – thank you for the kinds words. This trading plan can be tweaked and used for swing trading as well. The principles of the plan stay the same, just the time horizon changes for long term trading.