One of the first things beginning traders are told to do is to create a trading plan that will spell out a trading strategy and a list of rules to follow in implementing that strategy. The only problem with that advice is that beginning traders don’t really have any trading experience, and thus are lost when attempting to craft a trading plan for their trading.
Another problem with trading plans is that beginners are instructed to treat their plans as gospel and are told not to deviate from them. This prevents traders from adapting their strategies and rules to improve their performance, an essential step in every trader’s learning curve. 대여계좌
Instead of a rigid document to be created early on in your trading career and never to be changed, you should instead view your trading plan as a living and breathing set of guidelines, capable of being modified as you gain trading experience. This article will teach you how to create a trading plan that will guide your trading efforts without stunting your progress.
The 7-Point Trading Plan Template
In creating your trading plan, here are the items you should include:
1. Markets – What markets will you focus on? Be as specific as possible – if you’re trading stocks, what types of stocks will you concentrate on?
2. Timeframe – How long will you hold your positions for? Will you be a day trader focusing on trades lasting a few minutes, or a swing trader holding trades for a few days?
3. Time Period – What times of the day will you trade? You may have outside responsibilities that prevent you from trading an entire trading day. Pick which times of the day best suit your style.
4. Trading Style – How would you characterize your trading style? Perhaps you are a momentum trader focusing on trending stocks? Or maybe you specialize in a particular sector? Again, this can and will change as you gain experience and learn from your results.
5. Risk Management Rules – This is an absolutely essential and often overlooked component of your trading plan. How will you manage your risk, both on a per-trade basis and overall? You should have a “stop trading” point which is a fixed dollar amount that will force you to stop trading if you’re down by that much.
6. Mentor – Who do you follow and learn from as a teacher? Attempting to learn trading all by yourself is not only lonely, but foolish as it ignores the hard-earned wisdom of other traders. You can either repeat the mistakes of other professionals and hope to eventually learn the lessons and techniques that they’ve learned, or you can simply learn from successful traders and bypass those initial frustrations.
7. Learning Process – How will you structure your learning process as a trader? What steps will you take to ensure you’re always getting better? How will you structure your trading journal?