Trading Plan

This is a discussion on Trading Plan within the First Steps forums, part of the Reception category; I'm very new to the world of trading, I've a couple of books and number of threads on this site. ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Sep 9, 2004, 10:52am   #1
 
6 Posts
Joined Aug 2004
Question Trading Plan

I'm very new to the world of trading, I've a couple of books and number of threads on this site. I'm currently trying to work out what my next step should, as they a say "a little bit of knowledge can be dangrous". There's been numerous mentions on this site of a "Trading Plan"

Can anyone give me pointers as to how a Trading Plan should be constructed and what's contained within a Trading Plan.

Thanks in advance

Anthony
Anthony24_7 is offline   Reply With Quote
Old Sep 9, 2004, 11:28am   #2
Joined Apr 2003
im sure there is no set plan, but mine goes something like this.
in word i have a document i call routine for shares.
my first heading is periodically. - in this i have instructions on how i create my various databases of shgares to view. i do this about once a month. it gives detailed instructions ie delete all non index shares, delete eps growth <0 etc...
then i have my daily routine.
in it i have 5 various setups ie breakouts, isabuys etc..,
for each setup i have instructions on how to determine position size, what database to look at to find setup, what type of pattern to look for, work out buy price which i put into excell, work out stop porice which i put into excell, what time period i am going to trade.
i then have instructions on how to keep my trading journal.
theblackmamba is offline   Reply With Quote
Old Sep 9, 2004, 1:47pm   #3
 
sharriss's Avatar
Joined Jan 2004
A Trading Plan is vital to your success or failure as a trader. Mine goes something like this:

Monthly:
Look at all FTSE100 1 year charts.
Re-assess and filter down to top ~85 for volume and movement.

Weekly:
Look at these ~85 charts.
Mark on all Trends, Support & Resistance, Double Tops & Bottoms and Triangles.
Re-assess and filter down to top ~10 approaching these important levels.

Daily:
Look at these ~10 charts - get to know and love them!
Hopefully, somewhere in this set you have stocks that are capable of moving, have decent volume and are about to become tradable.

Money Management (for me) is even more important - if you don't know about it then I suggest you do some reading on the following:

How can I reduce my risk?
Amount to trade (% of capital)
Stop loss
Risk/Reward Ratio

Hope it helps a little,
__________________
Regards,
S.
sharriss is offline   Reply With Quote
Old Sep 9, 2004, 1:59pm   #4
 
Mr. Charts's Avatar
Joined Sep 2001
First things first, imho.
You need a Learning Plan
From your description you are a beginner, so look through First Steps, see whether you want to learn more about trading UK or European or US stocks or options or futures. After you've chosen what you think you're interested in, then consider time frame - intra day, several day moves etc. How does that fit in with your current life/job?
Then buy a good book on the subject, read it carefully and if you still think that particular field of trading is right for you, take it further.
One step at a time, don't rush into anything and above all be realistic about this business. It is not as easy as it might appear, but needs determination, hard work, self-control, application and humility.
HTH
Richard
__________________
Mr. Charts
Full time US Share Trader
Follow me on Twitter @MrChartsJoyson

Contributor to T2W's Trading FAQ Book
http://www.trade2win.com/books/trading-faqs

T2W interview

http://www.trade2win.com/knowledge/a...ichard-joyson/
Mr. Charts is offline Coach/Trainer   Reply With Quote
Old Sep 9, 2004, 2:11pm   #5
Joined Apr 2003
mr c - you are correct its not as easy as it may appear, having had two longs which profit warned in 2 days, im going greyer and balder. the key is as shariss says have a good money management plan, which makes the inevitible losses not as important.
i also plot my equity curve, and prefer a slightly increasing one rather than a volatile one
theblackmamba is offline   Reply With Quote
Old Sep 9, 2004, 2:51pm   #6
Joined Dec 2002
Here are some links to sites which helped me to crystalize my trading plan.

IHTH

http://www.rb-trading.com/begin.html

http://www.prudenttrader.com/ptplan.html

http://www.manfinancial.com.au/docum...Plan/index.asp
__________________
BlueChip Trader
BlueChip Trader is offline   Reply With Quote
Old Sep 9, 2004, 2:53pm   #7
 
6 Posts
Joined Aug 2004
Anthony24_7 started this thread Thanks for your help guys
I intend to trade on US as I work 9 to 5 and I don't have a boss that hovers over my shoulder (though I'm not complacent). I've just completed the book "Win As Stock Market Speculator by Alexander Davidson" and I'm awaiting delivery of the book "Technical Analysis of the Financial Markets by John J. Murphy" (I would appreciate suggestions of any other books to read). I've considered ďseveral day movesĒ as a timeframe but Iím too sure how much research time that involves. Once I've amassed a little more knowledge I attempt paper trading. BTW what's the general view of paper trading, does it just lull you into a false sense of security, can you learn anything about your behaviour, can it help your technical skills.

Iím trying to try treat trading like a business which will one day replace my salaried income, having goals but being realistic is pretty hard at the moment but my short term goal (first 6mths to a year) is to better the return Iím receiving from my savings bank 5% and Iíll build from that.

You guys though have given me food for thought

Thanks again
Anthony24_7 is offline   Reply With Quote
Old Sep 9, 2004, 3:01pm   #8
Joined Mar 2003
First decide what you want to achieve then work out how to get there
__________________
juanbyte
juanbyte is offline Training literature vendor (e.g courses / spreadbetting guides / eBooks)   Reply With Quote
Old Sep 9, 2004, 3:13pm   #9
 
Mr. Charts's Avatar
Joined Sep 2001
Hi A 24/7,
Glad to hear you have a good job in the Civil Service ;-)
As for TA, Murphy is all you need.
Personally I trade US intraday only. Trading over several days, imho, exposes you to overnight risk from news events. If you decide to anyway, make sure you are broadly Delta neutral to reduce risk in this type of market.
Richard
__________________
Mr. Charts
Full time US Share Trader
Follow me on Twitter @MrChartsJoyson

Contributor to T2W's Trading FAQ Book
http://www.trade2win.com/books/trading-faqs

T2W interview

http://www.trade2win.com/knowledge/a...ichard-joyson/
Mr. Charts is offline Coach/Trainer   Reply With Quote
Old Sep 9, 2004, 3:45pm   #10
 
6 Posts
Joined Aug 2004
Anthony24_7 started this thread Mr Charts
I actually work in the banking sector

What's the tax exposure trading US stocks
Anthony24_7 is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
Article: Trading Plan Template T2W Bot Educational Resources 88 May 24, 2014 5:46pm
A Trading Plan - You MUST Have One! timsk Home Trader 79 Jul 28, 2011 12:34pm
Trading Plan/Analysis aricho Psychology, Risk & Money Management 0 Jul 16, 2005 3:27am
Example of a trading plan llew Trading Systems 2 Jun 19, 2004 12:23pm

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)