Develop A Trading Plan
* Right from the start you need to ask yourself whether you are prepared to work
towards achieving a trading plan that will work. If yes, great! Many people have come
before you and not succeeded at trading. You need to separate yourself from all those
people and let's face it - this takes work!
* One of the key questions throughout the entire trading plan template. Many people
suggest that trading has a reasonably high failure rate so why do you think you are
going to be any different from most people. Why are you going to be successful trading?
* How will you overcome the emotions and feelings (eg. fear, worry, excitement etc) and
their influences on you when you are making your trading decisions?
* In the interests of little distractions and clear thought, where are you going to make
your trading decisions? Which location provides you the privacy to spend time with
yourself and with your own thoughts in peace and quiet? Identify a time in the day
when you are best suited to have this time to yourself.
* Write down your own strengths and weaknesses considering at least the following
areas: your self confidence, patience, discipline, organisational skills, computer
proficiency, motivation, tolerance when things don’t go your way, and your ability to
commit. Who likes to evaluate themselves? Not me, I can assure you but it is a
necessary evil.
* Remember the saying, “If you aim at nothing, you are sure to hit!” In line with this,
we wanted to identify our trading goals. Why are you trading and what do you expect to
achieve in the next 6 months, 1 year, or 5 years (or any time period you set)?
* How much time will you have to trade? This is crucial as it will most likely affect the
style of trading you adopt. Not much time available? Well, short term trading is highly
unlikely to work for you.
* There...
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