# My investment plan



## excalibur (23 January 2006)

Hello everybody

I am starting a new thread because I ´m curious to know how everyones WRITTEN investment plan looks like.
For example: What criteria is being used to form it.
What do I feel is important that be checked out.
How OFTEN do I check my investment plan.
What information do I use to VALUE my plan.

The game is open!!!!

Cheers from Germany
Excalibur


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## bullmarket (23 January 2006)

Hi excalibur

great idea for a thread. 

I found "Trading With A Plan" by Compton and Kendall to be a really good and helpful read on how to put together a trading and/or investment plan.

Some of the topics it says should be included in a trading plan are:

1) Why do you want to trade

2) What timeframe are you going to trade

3) What are your profit objectives

4) The tools you are going to use to trade (software, sources for research etc)

5) Risk and money management

6) The type of securities you are going to trade (shares, options, derivatives etc)

7) The minimum conditions that have to be met before entering a trade (technical and/or fundamental)

8) How you will determine your position sizes

9) The markets and sectors you will trade

10) Exit criteria for a trade

The above are just food for thought and I believe they are just as applicable whether putting together a trading or investment plan.

cheers 

bullmarket


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## bullmarket (23 January 2006)

In addition to



			
				bullmarket said:
			
		

> Hi excalibur
> 
> great idea for a thread.
> 
> ...




I forgot to mention

11) How will you measure the peformance of your trading/investing.
I use the ASX200 Accumulation Index. (which measures the market performance including company dividends/distributions)

bullmarket


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## excalibur (24 January 2006)

Thank you for the overview Bull
I couldn`t have done it better.
When we write down a plan, it is important for us...and no one else.
That is the reason WHY we write it down.
It contains those fundamentals or better said those qualities that we personally find that will succeed. Remember: To be the winner???
Well I want to know what fundamentals does each one of us THINK will keep us on this path to success.
How do I check myself out?
Which measurements do I personally use???


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## Jesse Livermore (24 January 2006)

excalibur said:
			
		

> I am starting a new thread because I ´m curious to know how everyones WRITTEN investment plan looks like.
> For example: What criteria is being used to form it.
> What do I feel is important that be checked out.
> How OFTEN do I check my investment plan.
> What information do I use to VALUE my plan.



I use a business plan template. 

I treat my investment portfolio as a business and even give it a name.

Part One – The Business

Executive summary 
Business description

Part Two – The Marketplace (Management and Marketing)

Market strategies 
Design and development plan 
Operations and management plan

Part Three - Financial Statements

Balance Sheet
Income Statement
Cash Flow Statement

I still have some tinkering to do, but watch out Berkshire Hathaway, Oracle is on it's way!

Jesse Livermore


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## bullmarket (24 January 2006)

No problem excalibur 

re your 







> It contains those fundamentals or better said those qualities that we personally find that will succeed. Remember: To be the winner???
> Well I want to know what fundamentals does each one of us THINK will keep us on this path to success.




I think the most important personal fundamentals/qualities (as you put it) are to develop the discipline, if one doesn't allready have it, to stick to the plan after it has been written down without letting emotions (fear/greed) influence decisions.

But if one is finding that their plan's objectives are not being met then the plan obviously needs to be reviewed which includes finding the root causes for objectives not being met and then incorporating steps/strategies into the plan to try to get it and its objectives back on track.  Having said this, it's probably still a good idea to review the plan periodically, even if objectives are being met, to see if any fine tuning can improve results even further......but the flip side is - if it ain't broken, don't fix it   

cheers

bullmarket


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