Trading plan

[marchusyoshua]

I hear a lot of people talking about trading pllan and having one, but all the searching in the world i couldent find anything on the net.

Im trying to find an exsample of trading plan not just how to set on up ? The book to elder Welcome into my traindg room dose that have a complete trading plan, im not asking because i want to follow it, but wants too see what they rcomend

Here are my start

stop loss based on atr (volatility) between 15-20 %
Atr based entry if the marked open up buy at yestodays closing price
- if the marked opens down buy 1,5 % below yestodays closing price
- risk\reward it has to bee more then 10 % until resistance
- Target 25 %
- protective stop after a gain of 10 % use trailing stop to protective 75 % of profit
- never risk more then 2 % of portfolio
- have 10 positions.
- antry just when the marked timing indicators (Zweig Plan) is in a buy
- when the models goes to nuteral sell 50%
Dont use a mechanical stop but a mental one( the volatility in the marked is so extreme that the close price has violate 15 % stop

 

[timsk]

Hi marchusyoshua,
This may help a bit:
http://www.trade2win.com/knowledge/articles/general_articles/trading-plan-template/
Tim.

 

[marchusyoshua]

Thank you - have you found places where there are more trading plans fore more long time investors. Im a great fan of canslim and zweig. So i usally holds my stocks from 1-6 weeks

 

[Trader333]

stop loss based on atr (volatility) between 15-20 %

Can you clarify what you mean by the above ?


Paul

 

[marchusyoshua]

Yes I have the fundamental strategy in place, but want to refine my technical approach to the trade.

Most of my trading plan i described in the above first post. But want to have a more desisive entry point. I have read the elder book and artickles. its a entry conditions that enters the dip in a overall trending stock. His week trend, and day dips. He altso with his entry buy seem to want the stock to retur from some of it dip before buying.

Have anyone tried this strategy. Did it work. Dose anyone have any points to a better strategy.

And altso the same with my trading plan. How much of the profit shoul i protech, shoul i wait until i reaches 10 % gain before i protect it ore less then this, should i then protect 50 % ore 75 % of the profit.

The reason im askin fore more imput, is that the trading plan given above is even more active trading that i use in my strategy.

So its just to have more input, and more trading plans that people follow and use them selv. - I loved the PDF file But just want to see on other trading plans altso

This is a lot of qestions, sorry

And the atr - i got a recomendatiosn to have a stop on 15 % but based on the atr the volatility in the stock allow a loss on 20 % if the volatility is high in a stock

 

[grantx]

Paul,

I think that's average true range.

Grant.

 

[Trader333]

I understand what ATR is but it was setting the stop at 15 - 20% of ATR that I am not clear on. Maybe an example would help ?

Maybe the idea is that if ATR is 100c then you set a stop at 15c to 20c which in my view will result in ongoing losses caused by setting a stop far too close to entry. The whole idea of measuring ATR is that you can expect a market to move by at least 1 x ATR against your position from entry price.


Paul

 

[profit13]

There is an old saying in business: "Fail to plan and you plan to fail."
Set exit rules – Most traders make the mistake of concentrating 90% or more of their efforts in looking for buy signals but pay very little attention to when and where to exit. Many traders cannot sell if they are down because they don't want to take a loss. Get over it or you will not make it as a trader. If your stop gets hit, it means you were wrong. Don't take it personally. Professional traders lose more trades than they win, but by managing money and limiting losses, they still end up making profits.

 

[the_winner_11]

Yes, that is really interesting, i agree i thik everything should weighed and limited