Thursday, April 23, 2015

Plan Your Trades, Then Trade Your Plan

2.
Your job as a trader is to follow a trading plan.
And who's going to write this trading plan? You are.
Notice the word "write". It needs to be written down, on your trading desk, in front of you.
Your trading system will give you the rules to follow. All you do is translate these into your plan.
A trading plan must have three parts: Setup, Entry and Exit.
(Obviously it's beyond the scope of this document to provide details on specific trading systems as there
are literally hundreds of them! However we do feature some occasionally in our newsletter.)
The point is that a trading plan covers every eventuality. You know what to look for in the market,
when to get into a trade, and when to get out.
Keep it simple.
Then follow it. Religiously.

No comments:

Post a Comment