pg. This is an A1 Trading document. For more infor please visit https://a1trading.com/
Building your trading plan
What should be included:
•
Goal objectives of your trading career
•
Starting Capital (even if you are demo)
•
SWOT Analysis (Strengths,
Weaknesses, Opportunities, Threats
•
What type of trader am I going to be?
•
Risk Management Control
•
Journaling
Before we begin, I would like to state that to become a successful trader it is 100% necessary to
have a goal and plan written down on paper. You need to know what you’re going to
do in certain
instances such as draw-down periods, winning streaks, you need to know what entry
criteria you
are going to have to take a trade, what type of trader you’re going to be such as trend trader,
counter trend, day trader, swing, etc.
Another big advantage of having a plan is that it is a great way
to stay on track, like your own little
roadmap to success.
Imagine you want to go on a cross
country road trip, without signs, maps, or GPS, you will highly
likely get lost along the way. Well, trading is the same. Without your roadmap and trading plan, you
will highly likely get lost along the way.
pg. This is an A1 Trading document. For more infor please visit https://a1trading.com/
Let
us build your plan
Goal objectives:
What is my trading goal for the rest of my career as a trader?
In this section, you must stipulate what your career goal as a trader is. It is easy to get caught up in thinking
your goal should be for the next few months or year, but your goal should think of the next 10, 20, 30 or 40
years.
For instance, you could start off by writing; ‘The goal of my trading career is to return an ROI
each year and
compound my account to help my business (trading account) grow until I can sustain a liveable lifestyle
from my own trading account. I will look to turn a consistent profit each quarter and review my trading on
each month’s end. The main part you need to high like is where do you want to see yourself in the next 10
years as a trader, without rushing the process.
Starting Capital:
How much c
apital are you starting with? Don’t feel discouraged if you’re still on demo or only have a small
capital such as $500 or so, you should still stipulate how much capital you are dedicating to starting your
trading career. It is okay to start with
low capital as you’ll eventually grow it over time. If you’re still on
demo then write down the starting capital you have on demo.
SWOT Analysis:
Strengths: What are your strengths as a person? Are you patient, disciplined, do you have lots of time on
your hands? Are you strong minded?