Stock Market Trading Plan

Stock Market Trading Plan

A trading plan is your rule book for successful trading. It does not have to be complicated. Keep it simple, and more importantly follow it rigorously.

The Following should be part your trading plan – personalize it to your trading/investing style.

  • 1. Start with a positive quote or something that gets you motivated and excited

  • 2. Daily trading goal

  • 3. Daily trading strategy

  • 4. Qualifiers

  • 5. Time Window Strategy

  • 6. X-Y-Z goals

Read your plan before trading each day. Do it every single day.

Below is a sample trading plan

  • 1. I can’t change the direction of the wind, but I can adjust my sails to always reach my destination – Jimmy Dean

  • 2. Daily trading goal: $150.00 per day

  • 3. Daily trading strategy: Buying qualified support and selling qualified resistance after strong buying/selling signals are presented by the market. No overnight positions.

  • 4. Qualifiers:

    • Price range $10 to $50
    • Volume minimum 400,000
    • Swing Trend: Closes above/below swing points
  • 5. 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.

  • 6. X-Y-Z goals

    • $150 per day
    • $750 per week
    • $3000 per month

A critical aspect of trading that is often overlooked by most is managing 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 a good stop loss strategy as part of your winning trading plan.

3 Comments

  1. Peter Solomon September 6, 2018 at 1:47 pm - Reply

    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.

  2. Joshua K June 2, 2018 at 2:58 pm - Reply

    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?

    • eStockPicks June 3, 2018 at 5:53 pm - Reply

      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.

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