Trading Plans
Going into anything blind is a formula for your failure. This is especially so when you go into the stock market. There’s an old saying that goes, “Fail to plan and you plan to fail.” Simple words to live by but a lot of people have ignored them and have consequently lost thousands of dollars to the vagaries of the market. If you don’t want to end up losing your shirt on the market, you better start your entry into it by formulating a trading plan.
So, how do we go about doing it then? Well, the foundations of a trading plan is this: what are your objective? How much money do you want to earn? It would be best and easiest to start your plan by setting a definite number for you to aim for every month or maybe weekly. This gives you a specific goal to meet and helps you focus on what you want. [ Read More... ]
Trading Plan
A trading plan is a definite requirement for becoming a successful stock trader. It can help you over the usual pitfalls that a trader may encounter in his career. But let’s be clear here: perusing a few books about stock trading and drawing up a few simple rules on a note pad does not a trading plan make. That’s pretty much a picture-perfect example of a bankruptcy waiting to happen. Trading plans require a lot of work and they need to be more detailed than having saying “buy low and sell high”.
To set it all up, first you have to sit down and take stock of what you have. This is more than in the monetary sense. You should know what you’re knowledgeable about and what you’re capable of handling. Your trading plan should match you and shaped by your quirks. [ Read More... ]
Trading Plan
One of the important parts of formulating a trading plan is a bit of self-reflection. I know, it’s not exactly something that we envision when we look at stock traders, but a good trader knows himself very well and whatever plans a trader has are based on his knowledge of himself and what he’s capable of.
Let’s take a look at how your trading plan can be improved if you focused on your strengths and took a good stock of your abilities. First, let’s start with what you know: what is it that you have knowledge about or are interested in? This is where we start to lay the foundations of your trading plan.
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