Building a trade plan is critical to your success. If you don’t have a plan with written rules you don’t know if you’re following the plan or not. Your plan should contain detailed descriptions of your edges, market you trade, loss limits, timeframe rules that you must commit to following, etc. In this section you’ll find links to sites and articles to help you develop your plan. There are sample trade plans you can download as a guide. Identify your edges, build your rules around them, write it down in your trade plan and do your best to stick to it.
Build a trade plan. Here is a sample trading plan by Trading Journal Spreadsheet. Below the sample you will be able to download a template in MS Word.
Here is a sample trading plan by Trading Journal Spreadsheet. Below the sample you will be able to download a template in MS Word.
How to Build a Winning Trading Plan
You have probably heard it before: every trader should have a winning trading plan, and they should follow it. I am saying it here, again, but I am going to explain how to go about actually making the plan, and how exactly to follow it. Many traders make the mistake of just trying to get something down on paper as a guide. This is an admirable intention, but the true reason why a winning trading plan (which is always a written trading plan) is useful is because it is the very act of making a personalized plan that burns into a traders mind the “why” and not just the “how”. Knowing “why” you are doing what you are doing, instead of just knowing how, is the key to avoiding common trading mistakes.
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