Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

smuhr

Define Your Trading Plan

Recommended Posts

In fact the trading plan is the first step to be a disciplined trader

 

Do you write your setup in your trading plan too ?

 

If some one can copy/paste the summary of a good and structured trading plan it will be very useful for beginners who want to write their first trading plan.

 

Thank you

 

__________________________

Watch Iron Man 2 Online Free

Share this post


Link to post
Share on other sites

I agree that the template in Mastering The Trade by John Carter is a great starting point. High Probability Trading by Marcel Link also has some good stuff on writing a trading plan.

 

In my opinion, your trading plan should contain every aspect of your trading business:

 

- Why you are trading and what your objectives are

- When you will be trading

- What you will be trading

- How many contracts/stocks will you trade as a function of your account size

- Money management

- Drawdown rules (for example, stop all trading for the month after a 20% drawdown)

- Your trading system (this can be as simple as moving average crossover system)

- Notes and reminders regarding psychology

- A solid system for tracking performance on a daily, weekly and monthly basis

- A journal detailing your trades, psychology, general market comments, etc

- How you will start your trading day and how you will end it

- Trading rules

- Montecarlo simulations including commissions and slippage so that you can learn what to expect from various trading systems.

 

My current trading plan is over 10 pages and covers just about everything. Attached to the plan there are several spreadsheets that is part of the plan.

 

Writing my journal has really helped me pull together everything I`ve studied and learned so far. It has also revealed several weak areas that I`m now working on.

 

When my plan is complete, it should be so detailed and conscise that I could give it to anyone and they could understand and use it.

 

Trading without a plan is planning to fail ;)

Share this post


Link to post
Share on other sites

Your tarding plan should include the following:

-Goals

-Markerts, instruments and the timeframes you are going to trade

-The tools you are going to use, eg any software or robots

-Risk and money management

-Trade strategies:- setups, entry and exit rules

-Discipline

-Folow ups and review.

Share this post


Link to post
Share on other sites
I agree that the template in Mastering The Trade by John Carter is a great starting point. High Probability Trading by Marcel Link also has some good stuff on writing a trading plan.

 

In my opinion, your trading plan should contain every aspect of your trading business:

 

- Why you are trading and what your objectives are

- When you will be trading

- What you will be trading

- How many contracts/stocks will you trade as a function of your account size

- Money management

- Drawdown rules (for example, stop all trading for the month after a 20% drawdown)

- Your trading system (this can be as simple as moving average crossover system)

- Notes and reminders regarding psychology

- A solid system for tracking performance on a daily, weekly and monthly basis

- A journal detailing your trades, psychology, general market comments, etc

- How you will start your trading day and how you will end it

- Trading rules

- Montecarlo simulations including commissions and slippage so that you can learn what to expect from various trading systems.

 

My current trading plan is over 10 pages and covers just about everything. Attached to the plan there are several spreadsheets that is part of the plan.

 

Writing my journal has really helped me pull together everything I`ve studied and learned so far. It has also revealed several weak areas that I`m now working on.

 

When my plan is complete, it should be so detailed and conscise that I could give it to anyone and they could understand and use it.

 

Trading without a plan is planning to fail ;)

 

10 pages! Some of ya'll obviously have bigger brain than me!

Share this post


Link to post
Share on other sites
I find specific profit goals, whether expressed in nominal dollars, percent ROI or however to be of no value, and I do no such "goal setting." I have defined when I will enter, how I will manage, and when and how I will exit a position. I know how I will determine trade size, and most importantly, I know when I will quit. That really is all you need - what will you trade, when, how much, and when do you get flat and when do you stop the bleeding when it occurs.

 

Best Wishes,

 

Thales

 

I agree. Given that a good goal/target needs to be both achievable and challenging, I find financial goals lead to pressure to achieve those goals. This can manifest itself in creating pressure that results in taking sloppy trades to achieve those goals. This is idiotic in my opinion as you can not control the market, thus you can not control the frequency or magnitude of (your) opportunity. This can then lead to other problems such as beating ones self up for missing target.

 

A better solution for me is to set a goal that is behaviour orientated. e.g. to be in 75% of my trades. To make sure I cut losses quickly, or not to trade if feeling under the weather etc.

 

What we can do however, is have an understanding of the typical returns the strategy employed will generate over a week/month depending on frequency of opportunity. If those returns arent happening, then either the market cycle has changed (find another edge or adjust the current one), or we are not executing according to the plan (why?).

Share this post


Link to post
Share on other sites
Good Morning,

 

All profitable traders talk about their Trading Plan so I would like your advises to define my own Trading Plan.

 

But what is a good Trading Plan ?

And what must and must not be written in a Trading Plan ?

 

Thank you,

Steven

 

Examine the charts over the weekend. Draw-adjust fibos-trend lines. Check if there are new patterns and formations. Find possible trades on long-short time frames. Take notes about entry-exit points. Check eco calendar...

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • TDUP ThredUp stock, watch for a top of range breakout above 2.94 at https://stockconsultant.com/?TDUP
    • TDUP ThredUp stock, watch for a top of range breakout above 2.94 at https://stockconsultant.com/?TDUP
    • NFLX Netflix stock watch, local support and resistance areas at 838.12 and 880.5 at https://stockconsultant.com/?NFLX
    • Date: 8th April 2025.   Markets Rebound Cautiously as US-China Tariff Tensions Deepen     Global markets staged a tentative recovery on Tuesday following a wave of volatility sparked by escalating trade tensions between the United States and China. The Asia-Pacific region showed signs of stability after a chaotic start to the week—though some pockets remained under pressure. Taiwan’s Taiex dropped 4.4%, dragged lower by losses in tech heavyweight TSMC. The world’s largest chipmaker fell another 4% on Tuesday and has now slumped 13.5% since April 2, when US President Donald Trump first unveiled what he called ‘Liberation Day’ tariffs.   However, broader sentiment across the region turned more positive, with several markets rebounding sharply after Monday’s dramatic sell-offs. Japan’s Nikkei 225 surged over 6% in early trading, rebounding from an 18-month low. South Korea’s Kospi rose marginally, and Australia’s ASX 200 gained 1.9%, driven by strength in mining stocks. Hong Kong’s Hang Seng rose 1.6%, though still far from recovering from Monday’s 13.2% crash—its worst day since the 1997 Asian financial crisis. China’s Shanghai Composite added 0.9%.   In Europe, DAX and FTSE 100 are up more than 1% in opening trade. EU Commission President von der Leyen repeated yesterday that the EU had offered reciprocal zero tariffs on manufactured goods previously and continues to stand by that offer. Others are also trying again to talk to Trump to get some sort of agreement that limits the impact.   Much of the rally appeared to be driven by dip-buying, as well as hopes that the intensifying trade war could still be defused through negotiations.   China Strikes Back: ‘We Will Fight to the End’   Tensions reached a boiling point after Trump threatened to impose an additional 50% tariff on all Chinese imports unless Beijing rolled back its retaliatory measures by April 8. ‘If China does not withdraw its 34% increase above their already long-term trading abuses by tomorrow... the United States will impose additional tariffs on China of 50%,’ Trump declared on social media.   If implemented, the new tariffs would bring total US duties on Chinese goods to a staggering 124%, factoring in the existing 20%, the 34% recently announced, and the proposed 50%.   In response, China’s Ministry of Commerce issued a stern warning, stating: ‘The US threat to escalate tariffs is a mistake on top of a mistake... If the US insists on its own way, China will fight to the end.’ The ministry also called for equal and respectful dialogue, though signs of compromise on either side remain scarce.   Beijing acted quickly to contain a market fallout. State funds intervened to support equities, and the People’s Bank of China set the yuan fixing at its weakest level since September 2023 to boost export competitiveness. Additionally, five-year interest rate swaps in China fell to their lowest levels since 2020, indicating potential for further monetary easing.   Trump Talks Tough on EU Too   Trump’s hardline approach extended beyond China. Speaking at a press conference, he rejected the European Union’s offer to eliminate tariffs on cars and industrial goods, accusing the bloc of ‘being very bad to us.’ He insisted that Europe would need to source its energy from the US, claiming the US could ‘knock off $350 billion in one week.’   The EU, meanwhile, backed away from a proposed 50% retaliatory tariff on American whiskey, opting instead for 25% duties on selected US goods in response to Trump’s steel and aluminium tariffs.     Volatile Wall Street Adds to the Drama   Wall Street experienced wild swings on Monday as investors processed the rapidly evolving trade conflict. The S&P 500 briefly fell 4.7% before rebounding 3.4%, nearly erasing its losses in what could have been its biggest one-day jump in years—if it had held. The Dow Jones Industrial Average sank by as much as 1,700 points early in the day but later climbed nearly 900 points before closing 349 points lower, down 0.9%. The Nasdaq ended up 0.1%.   The brief rally was fueled by a false rumour that Trump was considering a 90-day pause on tariffs—rumours that the White House quickly labelled ‘fake news.’ The market's sharp reaction underscored how desperate investors are for any sign that tensions might ease.   Oil Markets in Focus: Goldman Sachs Revises Forecasts   Crude prices also reflected the uncertainty, with US crude briefly dipping below $60 per barrel for the first time since 2021. As of early Tuesday, Brent crude was trading at $64.72, while WTI hovered around $61.26.   Goldman Sachs, in a note dated April 7, lowered its average price forecasts for Brent and WTI through 2025 and 2026, citing mounting recession risks and the potential for higher-than-expected supply from OPEC+.       Under a base-case scenario where the US avoids a recession and tariffs are reduced significantly before the April 9 implementation date, Goldman sees Brent at $62 per barrel and WTI at $58 by December 2025. These figures fall further to $55 and $51, respectively, by the end of 2026. This outlook also assumes moderate output increases from eight OPEC+ countries, with incremental boosts of 130,000–140,000 barrels per day in June and July.   However, should the US slip into a typical recession and OPEC production aligns with the bank’s baseline assumptions, Brent could retreat to $58 by the end of this year and to $50 by December 2026.   In a more bearish scenario involving a global GDP slowdown and no change to OPEC+ output levels, Brent prices might fall to $54 by year-end and $45 by late 2026. The most extreme projection—based on a simultaneous economic downturn and a full reversal of OPEC+ production cuts—would see Brent plunge to below $40 per barrel by the end of 2026.   Goldman noted that oil prices could outperform forecasts significantly if there was a dramatic shift in tariff policy and a surprise in global demand recovery.   Cautious Optimism, But Warnings Persist   With both Washington and Beijing showing no signs of backing down, markets are likely to remain volatile in the days ahead. Investors now turn their attention to upcoming trade meetings and policy decisions, hoping for clarity in what has become one of the most unpredictable trading environments in recent years.   Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Andria Pichidi HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • CVNA Carvana stock watch, rebound to 166.56 support area at https://stockconsultant.com/?CVNA
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.