# Trading Plan - basics and tips



## RichKid (13 August 2004)

Hi folks,

Someone started a thread on a written trading plan but I can't find it- meant to put this there. This is a link to an article by Louise Bedford, brief but a start nevertheless:

http://www.asx.com.au/myasx/newsletters/20040810_TradingPlan.shtm

(Any chance of having a site map/index of topics or a search engine Joe/JetDollars?)

Thanks,
RichKid


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## RichKid (8 October 2004)

*Re: Trading Plan- basics and tips*

Well we've got the search function now so problem solved. Looks like trading plans aren't that common- very worrying.


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## JetDollars (10 October 2004)

*Re: Trading Plan- basics and tips*

RichKid,

Sorry I missed this post so how.

Regarding trading plan, I am very keen in writing one and currently do so with 80% completed.

I alway try to search so sample of trading plan, but never find any useful one. I know that everyone trading plan is different, but still it will be useful if I have some sample.

Not many people in this forum have a written trading plan as far as I know because I posted this topic before in the forum.

Do you have a traiding plan? is it written down?

Do you have a trading system? is it written down?

Does the trading plan include trading system?


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## RichKid (30 October 2004)

*Re: Trading Plan- basics and tips*

Hi Jet, 

My turn to apologize! Only just saw the reply, I'm still forming a plan!! 

I've got odds and ends written down but things aren't clear yet. I basically set entry, exists before entering (with support levels and risk to return).
I'm more or less formulating a George Soros like strategy- a core holding of steady uptrenders with more speculative ones thrown in. Each will have its own rules for entry, exit, management, profit targets etc. I follow Edwards and McGee as my 'master plan' but haven't quite decided how to incorporate fundamental analysis into it (per Ben Graham's Intelligent Investor). My capital is limited so that affects things as well. Patience is the key to my survival- I do overtrade sometimes and get fixated with stocks. My trading system/plan will be linked closely to my overall money management plan (which includes stocks and other matters too).

Safe to say my losses are diminishing now and my profits are small but more consistent. The key to my mind is to take the emotion and stress out of it. I'm getting there. Protecting my capital is becoming more of priority for me.

I'll post more once I have real written plan.

How're you going with it?


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## tech/a (31 October 2004)

*Re: Trading Plan- basics and tips*

Hi.

Writing a plan is commendable.

However Im afraid it WONT make you a successful trader.No matter how good it is and how much it conforms with modern theory.
Fundamental Or Technical,Discretionary or systematic.

Unless you KNOW that your plan has a Positive expectancy,you could be trading a method which could cost you a fortune.

So after devising your plan unless you can PROVE to yourself that your Risk reward ratio is greater than 1.5 (Should be around 4 ) Thats 4X return against amount risked AND your Winning trades to losing trades relative to your Risk reward ratio returns a positive expectancy(PROFIT),your no better off than having NO PLAN at all!

Seriously this isnt gobbldy gok this is seriously the MISSING link for most traders.The 3% who do trade profitably,CONSISTANTLY know this!

Learn all you can about this and how you can relate it to YOUR plan.

tech


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## GreatPig (31 October 2004)

*Re: Trading Plan- basics and tips*



			
				tech/a said:
			
		

> Unless you KNOW that your plan has a Positive expectancy



Which is where backtesting is useful for technical analysts. While past performance is never a guarantee of future performance, it does at least show that the plan can make money using real prices.

Not sure how you'd do this with fundamental analysis though.

GP


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## tech/a (31 October 2004)

*Re: Trading Plan- basics and tips*

GP.

Theoretically youd have to do it the same way.

There is as much fundamental Theory when it comes to trading as there is technical.

Fundamental analysis is more benificial in finding the stocks to place in your universe of stocks to trade.
Youll have no doubt heard of Top Down Analysis.(Which incidently I have spent hrs trying to define an edge with this analysis-----fraid I cant find one)
Which for those who dont know is the theory of trading the strongest index and the strongest stock/s in that index/es.

The combination of Fundamental analysis for selection of universe of stocks to trade and then the introduction of Technical analysis to time entry , exit, and stop placement then gives you the ability to define expectancy.

Without this your limited to hand testing Fundamental theory and as the sample of trade information will be limited due to limits on time and resourses the results will be questionable.

Take the Fundamental theory of trading stocks only with low PE's.
This is a theory and fundamentally a good one.
BUT does anyone know how that has performed on ALL stocks with low PE's over the last 8 yrs?
Well if you dont know you shouldnt take it as gospel.let alone place $100K in your portfolio on these stocks.
WORSE $10K if your net worth is $15K.

Same goes for any technical setup!!!!

tech


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## RichKid (31 October 2004)

*Re: Trading Plan- basics and tips*



			
				tech/a said:
			
		

> So after devising your plan unless you can PROVE to yourself that your Risk reward ratio is greater than 1.5 (Should be around 4 ) Thats 4X return against amount risked AND your Winning trades to losing trades relative to your Risk reward ratio returns a positive expectancy(PROFIT),your no better off than having NO PLAN at all!
> tech




What exactly is Risk to Reward Ratio? I have a feeling I've misunderstood but this is what I have in mind when I decide whether to enter (don't laugh if it sounds absurd!, I'm still learning this stuff).

If I find a stock I like (various reasons) I look for support and enter above it or join the trend if it's strong. I will use DES Destra as an example since I'm following it and the price is at where I entered (12c). I saw a review at Aegis equity review, eyeballed the chart, noticed the reason for the fall (so a recovery in play), saw the rounding bottom and corresponding volume. Watched it break the resistance at 10.5c. 

This is where I made a mistake (due to emotion).  I saw it sail upwards that day and panicked (got greedy) thinking I'd miss out so I bought at 12c instead of waiting to see how it settled, as I normally do, there was high volume though. Anyway, the resistance at 10.5c held but I could easily have bought lower than at 12c. My target is about 15c.

This is how I work out my risk to return. I bought at 12c so the percentage risk is worked out via the change in the entry price. Hence if it falls from 12 to 10.5 (Support) It's fallen 1.5c which is a 12.5% fall. I would activate my stop loss and sell if it broke 10.5c or look to sell at that price if signs are bearish, I can always buy in later. As it was I held as I saw support continuing.

So that's the downside percentage risk for me according to price (ie 12.5% loss). Now for the upside. I see the next major resistance level at 15c. So I estimate a possible profit based on the percentage rise from 12c (entry price). Which is 3c divided by 12c x 100 = 25%. 

My ratio is simply 12.5%:25% (which is 1:2). 

Overall things which could go wrong include slippage (ie not geing able to sell at 10.5c once it was broken) and a stronger resistance level appearing before 15c.

Once the price gets to 15c I will most likely sell and wait for it to establish support above it and then decide whether to enter again.

I try to aim for a risk to reward ration of 1:3 but if a stock has other reasons for being attractive (eg fundamentals for Destra suggests a recovery as the reasons for the sell down wont continue, stable business model and cashflow is to increase next quarter) then I may enter at 1:2. 

So basically I don't expect to lose all my money, just a bit of it and I try to have 3 times as much upside as downside on a percentage basis. Liquidity is also important to ensure I have takers for the price I want.

Hope this method is understandable even if you don't agree with it.

I have included a chart here for convenience, there's a shorter term chart at the Destra thread showing the rounding bottom in more detail https://www.aussiestockforums.com/forums/showthread.php?t=578


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## tech/a (1 November 2004)

*Re: Trading Plan- basics and tips*

RK.

Excellent you have a grasp of R/R on a SINGULAR basis.

Now where most have no idea is on a long term basis on all trades they take.
Its knowing in advance that by trading a particular way/method/system,that your TOTAL trading has a positive expectancy.

Being Nett wins and Nett Losses = a positive return.
Now to do that you dont necesserily have to have more than 50% wins.

Compounding the problem discretionary traders normally alter their R/R on EACH trade.
Worse they miss a stop and the R/R for that trade and every other before it goes out the window----as the calculation is based upon every trade.

How you trade and what setups you use are of no consequence when determining wether what you do is profitable.
tech

tech


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## RichKid (1 November 2004)

*Re: Trading Plan- basics and tips*

Glad I'm roughly on the right track. And yes, I'm still working out the overall risk to return strategy. A lot more work before I get anywhere. Thanks again for your critical and constructive views TechA, it's much appreciated!


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## wayneL (1 November 2004)

*Re: Trading Plan- basics and tips*

>>Compounding the problem discretionary traders normally alter their R/R on EACH trade.
Worse they miss a stop and the R/R for that trade and every other before it goes out the window----as the calculation is based upon every trade.<<

Bull****! What you are describing here is an undisiplined trader, not a discretionary one, and is a slight on discretionary traders

Mechanical traders still need the disipline to exersize their stop. 

Discretionary ones likewise still have inviolable rules they adhere to.

Tech, you really need to get out more! The whole universe of traders is not contained within reef, here and other forums.

You obviously would be surprised how many successful discretionary traders there are.


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## tech/a (2 November 2004)

*Re: Trading Plan- basics and tips*

Wayne.

Do you really think that disiplined discretionary traders form the majority!

Most do have rules and they alter with each trade.
Some will use a price action for one trade a support/resistance for another,or an oscillator for another.
Often a combination of all three.

Disiplined Disctretionary traders are rare.
Disipline doesnt guarentee Profit for discretionary or mechanical traders.Only knowledge of the results of your disiplined discretionary trading/mechanical methodology can tell you that.
Wether that be historical or actual results over time.

I would be suprised Wayne Im yet to find ONE!!!!

Ill keep saying it Im sure they are out there and Im sure that they are in a very very small minority particularly returning consistant profit over 2 or more years-------I havent found one and they havent been rushing from here or Reef to prove me wrong either.

That in itself proves a point I think.
Hell if someone questioned Longer Term trading like I question short term discretionary trading Im sure there are atleast 3 of us who would step up to bat!

Whats the big deal asking for varification?
Seems I ask the questions that others wish they had.

Authenticator of Myth------------hahaha I love that!

tech


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## wayneL (3 November 2004)

*Re: Trading Plan- basics and tips*

Well, I can't really say more than Ive said already re discretionary trading.

Perhaps we have slightly differing perceptions of what discretion means.

I will have to concede that many disc. traders have no rules whatsoever. These are usually beginners....they won't last long enough to be considered seasoned traders.

BUT all discretionary traders I hang out with on MIRC are highly disiplined and in fact have CLEAR and INVIOLABLE rules and will not trade unless the precise setup presents itself. They have to be otherwise they would never have become seasoned. Mostly these are MOMENTUM traders with some REVERSAL traders. The discretion bit comes in when deciding to take the trade or not...and when to exit.

However it all comes down to the  most cliched of the trading cliches...Cut losers and let winners run.

What we are looking for is some evidence than a momentum move or a reversal MAY have begun. We are looking to enter BEFORE the rest of the world jumps on the move. This is imortant for two reasons 1/ the stop is set very close to the entry 2/ the later the entry, the less potential movement to the upcoming exit according to criteria.

Pretty basic stuff really.

Is is so hard to believe that a discretionary trader can set a stop to limit losses and to allow winners to develop to a target or some other exit criteria?

Is it too hard to believe that winners vs losers could be somewhere between 40%-60%?

Is it too hard to believe that risk vs reward could be anywhere between 1.5:1 to 5:1?

I don't think this is impossible to believe!

We could enter randomly and achieve the above!


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## tech/a (3 November 2004)

*Re: Trading Plan- basics and tips*

Wayne.

You and those who trade the way you have described are way beyond the Discretionary trader.
Infact Id say your systematic in approach with a discretionary element youve gone way past my interpretation of a discretionary trader.

((I cant opperate the quote thingy%$#&.))



Is is so hard to believe that a discretionary trader can set a stop to limit losses and to allow winners to develop to a target or some other exit criteria?

Is it too hard to believe that winners vs losers could be somewhere between 40%-60%?

Is it too hard to believe that risk vs reward could be anywhere between 1.5:1 to 5:1?

I don't think this is impossible to believe!

We could enter randomly and achieve the above!


Anyway.

In answer NO ITS NOT but this is WAY beyond the discretionary trader.
You seem to have understood and applied positive expectancy you have and do your NUMBERS and you understand where your success comes from----------------and its NOT your method of trading-------------Its the ABILITY to turn POSITIVE NUMBERS CONSISTANTLY.

How many understand that!!-------3% I believe.

Common ground perhaps!

tech


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## Garpal Gumnut (8 January 2010)

Jeez, I miss tech/a's take on trading systems, cash and trade management.

Lets hope he writes a book one day.

Pure gold.

gg


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## Wysiwyg (8 January 2010)

Yes any Trading Plan advice would be well received. 

Know when to be trading in the market place and when not to be trading in the market place.




.


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## Garpal Gumnut (8 January 2010)

Wysiwyg said:


> Yes any Trading Plan advice would be well received.
> 
> Know when to be trading in the market place and when not to be trading in the market place.
> 
> ...




Agreed,

My plan is to get out atm (today) and wait for the double bottom or a breach of 5 on the XAO.

Simple but it suits me atm.

Sectors I'll leave until it happens, then individual stocks.

Any thoughts?

gg


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## Ashsaege (8 January 2010)

Garpal Gumnut said:


> Agreed,
> 
> My plan is to get out atm (today) and wait for the double bottom or a breach of 5 on the XAO.
> 
> ...




your plan is to get out of the markets now? What happens if we dont get a double bottom?
Im doing the exact opposite. To me the risk is not being involved. The market has currently been going north. If it reverses then my system will take me out and protect my captial.


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## Garpal Gumnut (9 January 2010)

Ashsaege said:


> your plan is to get out of the markets now? What happens if we dont get a double bottom?
> Im doing the exact opposite. To me the risk is not being involved. The market has currently been going north. If it reverses then my system will take me out and protect my captial.




One does not have to be in the markets to profit from their movements.

I believe a major retracement is on the way. This is a belief. I have no evidence for this.

As I said in my post I will be back in, if it does not eventuate and the XAO moves up through 5000 with confirmation.

Simple as that.

gg


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## Wysiwyg (9 January 2010)

tech/a said:


> *Unless you KNOW that your plan has a Positive expectancy,you could be trading a method which could cost you a fortune.*
> tech





GreatPig said:


> Which is where backtesting is useful for technical analysts. While past performance is never a guarantee of future performance, it does at least show that the plan can make money using real prices.GP




The stock universe one will be trading in is important when designing a trading plan? For instance if we include stocks under a certain price or turnover; during testing the results may be very misleading.


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## Garpal Gumnut (10 January 2010)

As I said above , my basic trading plan atm is , with reasons.

1. To be out as we approach 5000 on the XAO, it is as likely it will retreat as break through and I've recovered due to buying RIO when it was low, from my losses last year.

2. Markets often make a double bottom in bear markets, and we are still in a bear.

3. If it does break through 5000, I'll wait for a retracement and further advance.

4. I will then and only then look at Sectors and then Stocks.

Its a plan. 

Its not sophisticated.

A plan need not be sophisticated.

Any thoughts, and what is your plan atm.

gg


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## Garpal Gumnut (10 January 2010)

Can you guys start a new thread and let people comment on my recent posts.

gg


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## Grep (10 January 2010)

Garpal Gumnut said:


> Any thoughts, and what is your plan atm.
> 
> gg




GG,
My plan is simple.The trend is up.I am 100% loaded long in all four ASX trading systems that I use.( 3 x weekly and 1 x daily).

I will stay long until the market starts moving down.

Cheers,

Grep


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## Joe Blow (10 January 2010)

Garpal Gumnut said:


> Can you guys start a new thread and let people comment on my recent posts.




All off topic posts have now been removed and any future posts in this thread that are off topic will also be removed.

Back on topic please everyone.


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## Garpal Gumnut (10 January 2010)

Grep said:


> GG,
> My plan is simple.The trend is up.I am 100% loaded long in all four ASX trading systems that I use.( 3 x weekly and 1 x daily).
> 
> I will stay long until the market starts moving down.
> ...




I generally go with the trend but I find major levels like 5000 often pose a barrier to the continuation of the trend.

It often retraces, if not to the beginning of the uptrend, often to a fibonnaci level between.

5000 is a strong psychological number. 

Trading the trend though I agree is safer, the trend is your friend.

gg



Joe Blow said:


> All off topic posts have now been removed and any future posts in this thread that are off topic will also be removed.
> 
> Back on topic please everyone.




Thanks Joe, gg


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## Boggo (10 January 2010)

My view of Basics and Tips.
I use two breakout systems and an Elliott Wave system.

The breakout systems are way in front at the moment mainly because they are long only and work with the current trend and don't operate unless there is a trend.

The EW system works both ways and has the advantage of proposing a possible price target.

These basic rules apply to all three of my systems...
- Know your entry
- Know your stop
- Know how much $ to risk
Get your trailing stop to breakeven when your close has moved to greater than 100% of the initial risk and barring some catastrophe you have a free trade.

The charts below highlight examples of the *basics* and the *tips* would be to stick to the basics (risk is $400 in both cases).

(click to expand)


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## Boggo (12 January 2010)

Follow on from post above, TOL hit $9.20 today, 1c from predicted level.
Stick to the plan (even if it takes ages  )

Yesterday's chart...


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## quinn123 (12 January 2010)

I would be surprised if any successful trader would post up there trading plan because it takes a lot of time and experience to produce a trading system with positive expectancy and high opportunity.  I would love to see a basic trading plan though.  Just something I could use as a template to help refine my own.  

I'm a EOD trader and only trade to supplement my income.  I allocate 2 hours a day to my trading business.   I'm basing my trading system on trend following using technical analysis.  My goals may be largely different from some of you.

The goals of my trading plan are:
1. Handle the psychological aspects of trading
2. Have stringent entry/exit, risk management and money management criteria
3. Work in all market environments (dynamic vs static)
4. Use only technical analysis with some fundamental filters in my screener (filter)
5. Beat the average market return

I'm currently stuck at 3.  Do you guys have a trading system that will alter as the market changes from trending (up/down) to trading in a range (sideways).  Is this something I should shoot for or is it just a pipe dream?  Should I just be out of the market when it is going sideways?  I'm at the stage where I'm tempted to search for the holy grail of entry methodology but I don't let myself get pulled into that trap.  I'm spending 90% of my time on 1. & 2. because I think they are what really matter.  

Cheers

Michael


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## It's Snake Pliskin (13 January 2010)

quinn123 said:


> I would be surprised if any successful trader would post up there trading plan because it takes a lot of time and experience to produce a trading system with positive expectancy and high opportunity.  I would love to see a basic trading plan though.  Just something I could use as a template to help refine my own.
> 
> I'm a EOD trader and only trade to supplement my income.  I allocate 2 hours a day to my trading business.   I'm basing my trading system on trend following using technical analysis.  My goals may be largely different from some of you.
> 
> ...



You might not get anyone posting up a trading plan that is not for someone other than the original developer or constructor. However, there are books and resources to be found. If you go to the ASF bookshop you can find this book:
*Smart Trading Plans
by Justine Pollard
Paperback
264 Pages
2008
ISBN 0731407865*

I haven't read it and do not intend to read it. But it may be what you are looking for in regards to templates.


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## Wysiwyg (13 January 2010)

quinn123 said:


> I'm a EOD trader and only trade to supplement my income.  I allocate 2 hours a day to my trading business.   I'm basing my trading system on trend following using technical analysis.  My goals may be largely different from some of you.



How's it going. I am similar to what you posted. My present phase is with Amibroker and mechanical systems. I am becoming more disillusioned the deeper I delve into the rabbit hole. I have spent the last few month testing other code creations and none so far are above normal or worse. However I have experimented by adding pieces of some code with my own creations from a limited code knowledge to get slightly better results but this could be curve fitment which is the another trap.  

I am starting to feel I am chasing my tail so to speak as in my opinion a coded strategy that works is rare, very rare. The reason being is because one size doesn't fit all and as you noted the time to be in a trend participation is when the indices are running. In this case a buy and hold strategy would work well anyway.

The other block I'm having is with exits. Entry is fine, stop loss is fine, money management much improved but coding the right exit is difficult because every stock behaves differently. 

In conclusion. The stock market isn't easily quantifiable by a piece of computer language. Should I continue chasing my tail? I will continue for a further while and gather some knowledge along the way.


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## quinn123 (13 January 2010)

Hey,
I’m in the early stages of developing my trading sytem and I’m usure of what expectancy it will produce becasue I do not have enough data.  I use incredible charts for charting and excel for bookkeeping and money management.  

I have made a decision to not go into backtesting with amibroker.  I’m not going to attempt to produce some coded strategy for the markets because I don’t believe that holy grail exits.  It would require a “Neural Net CPU,  a learning computer" (Terminator) because the markets are always changeing.  This is only my belief though and I’m open to suggestions.

From what I have learnt there are three basic requirements for a trading system:
1.	Money management - keeps you in the game long enough to either become profitable,  lose slowly or go nowhere 
2.	Risk management – Deals with how your system will react to varying market conditions 
3.	Entry and Exit methodology -  Techniques you employ to enter/exit trades.  I only want to enter high probability trades.  I want a exit strategy that tells me when to stick with your guns, when to walk away and when to run away.

I think the easy ones are money management and entry criteria because its all basic maths and statistics.  

Risk management and exit methodolgy is bloody hard and I’m spending most of my time on this as well.


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## Garpal Gumnut (13 January 2010)

Garpal Gumnut said:


> As I said above , my basic trading plan atm is , with reasons.
> 
> 1. To be out as we approach 5000 on the XAO, it is as likely it will retreat as break through and I've recovered due to buying RIO when it was low, from my losses last year.
> 
> ...




I never thought the market would head down so quickly since I posted this.

Looks like I was correct. 

I'll get the ole Fibonnaci out to see where its going to stop.

gg


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## Ron88 (13 January 2010)

It's Snake Pliskin said:


> You might not get anyone posting up a trading plan that is not for someone other than the original developer or constructor. However, there are books and resources to be found. If you go to the ASF bookshop you can find this book:
> *Smart Trading Plans
> by Justine Pollard
> Paperback
> ...





Hello!  I think you should read it.  I have read Smart Trading Plans and it is an excellent book - it also has a basic trading plan included in it and all the info you need to put your own together.  You get a word document you can download that is a trading plan template and that goes with the book.  The book really assisted me in finishing off my trading plan.  

In hindsight, the book did not only help me as a trader but as a person as well.  You see, the book does not only help you with charts and figures, it will help you know yourself (as a person; e.g. your attitude, your personality, your psychological orientation) which is significant when you are already out there trading.  

I just completed her Smart Trading Plan & System Development course in which she shares all her trading systems and strategies and gives out the MetaStock codes to her systems and her trailing exit indicator.  It really helped me to refine my trading system and exit strategies and is the best course I have found that gives you real information from a trader.


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## Mr J (14 January 2010)

quinn123 said:


> I would be surprised if any successful trader would post up there trading plan because it takes a lot of time and experience to produce a trading system with positive expectancy and high opportunity.  I would love to see a basic trading plan though.  Just something I could use as a template to help refine my own.




Buy at support, sell at resistance. As TH might say, it's a cliche, but it is my trading plan.


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## quinn123 (14 January 2010)

That's like saying buy low, sell high.  Sure that's what you have to do at the end of the day to make money in an individual trade but its how you go about it that determines your success.  



> Buy at support, sell at resistance. As TH might say, it's a cliche, but it is my trading plan.




Its a great plan though if you apply it in the right way.


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## Mr J (14 January 2010)

> That's like saying buy low, sell high.




Yes and no. Yes because it's a common, seemingly generic statement and unlikely to help, and no because it is actually quite specific. It shows where I buy, where I sell, and conclusions can be drawn on where I exit. Yes, some small details are missing (such as my exit strategy not being that simple), but it's enough to build a strategy around.


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## DocK (14 January 2010)

Garpal Gumnut said:


> I never thought the market would head down so quickly since I posted this.
> 
> Looks like I was correct.
> 
> ...




What did you come up with GG?  I don't think I'm applying the indicator in the correct way on my charts, and wouldn't mind a comparison.

I think I'm quite similar to quinn123, in that I have the risk management rules and position sizing rules set, and have been sticking to them religiously.  Unfortunately, due to the sideways movement of the market prior to the Santa rally late Dec, I was sustaining several small losses on my short-term system, and a fair bit of whipsawing.  I know that over time my systems will be profitable, but the periods of consolidation are very frustrating.  This is where I need more knowledge/experience or a different strategy.  I find myself tempted to tighten up stops in order to protect open profits - which in hindsight would sometimes have been the right decision, and sometimes the wrong one!  Of course with hindsight it is easy to say "yes, the market was going nowhere for a few months so a trend-following system was not going to achieve great results".  When you're in the midst of it my thinking is more along the lines of "If I tighten up my stops the market will no doubt have a minor correction prior to resuming an uptrend - and I'll be out of it, but if I leave my stops where they are there could be a larger correction or the resumption of the downtrend and I'll give back a fair bit of profit prior to my stops being hit".  
I generally waste several hours vacillating, and in the end decide to trust in my system and leave my stops where they were set.  It's the "letting your profits run" bit that is hard to stick to at times.  I guess I'd like to be able to recognise or "predict" a change in trend much sooner in order to have my cake and eat it too.


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## Trend Hunter (6 February 2010)

Hi All
This thread on trading plans is an interesting thread, as its often the area many traders struggle with, maybe not quite knowing what actual needs to be in a trading plan. 
A trading plan needs to be detailed enough that you know what action to take before it happens. But at the same time it needs to be simple enough that someone else could easily follow it. 
The main Points to cover are:

Life goals
Trading goals
Entry system
Exit system
Trade Order Management
Money Management (including Market Mode & Sentiment Analysis)
Process of finding new trades and Open position management
Your success profile (to build consistency)
How you measure your performance for improvement
Daily Routine
What you will do for your Countinuous Education

I am writing a series of articles to help traders with this process of developing their own trading plan. I hope its helpful.
The first article is called "Top 10 questions a trading plan must answer" and can be found on my website below. 

Cheers,
Cade


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## stevo2 (26 June 2017)

Ron88 said:


> I just completed her Smart Trading Plan & System Development course in which she shares all her trading systems and strategies and gives out the MetaStock codes to her systems and her trailing exit indicator. It really helped me to refine my trading system and exit strategies and is the best course I have found that gives you real information from a trader.




Hi Ron, long time since your post and I'm wondering if you or anyone else has traded Justines method for any length of time, if so how has it worked out?
cheers ian


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