Trading Plan

The Format of Your Trading Plan

Again - to draw on the business plan analogy - just as a there is a standard format for designing any business plan, there is also a format for designing a trading plan. In fact, there are three major components within any trading plan: entry, exits and money management rules. In the chapters that follow, we will go into these in more detail and you will work through a process to design each component. Here is a quick summary:

1. Tested Entry Rules

Entry rules are a precise set of rules that a tradable instrument must pass before you enter a trade. Entry rules should be simple, direct, and leave no room for human judgment.

2. Strict Money Management Rules

Perhaps the most important and least addressed aspect of trading is the ability to manage risk. A profitable trader is one who has the ability to manage the risks associated with trading. This is achieved with strict money management rules.

3. Tested Exits Rules

Entering a stock is all to no avail (ES: help/service) if you do not know when to exit your position. Having a set of rules that define your exit is equally important as a set that defines your entry.

Although simple in their explanation, these three components can together and will have an enormous effect your trading. The advantages of utilising a trading system are numerous; most market participants agree that their greatest benefit is the tempering of destructive emotions, considered the enemy of all successful traders, and removing it from the decision making process.

Ini semua kata David Jenyns... bukan saya lo... katanya lagi: The key is consistency and discipline. Buat apa ada trading systems yang jumlahnya banyak kalau tidak pernah dilaksanakan secara konsisten dan disiplin? Jadi cari yang cocok dengan Anda dan yang simple aja, dan laksanakan dalam trading mu,katanya.

Hati-hati dalam memilih saham, selalu recek dengan chart Anda, pilih yang cocok saja dan jangan lupa MM dipasang di Trading Plan serta Be Discipline.

Semoga bermanfaat.
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