A vital tool in every trader’s arsenal is their trading plan. It is important for traders to take the time to define their own personalised trading plan according to their trading system, money management rules and personal expectations.
The trading plan must be clear and simple.
The trading plan defines a clear set of actions that are to be performed when a specific set of conditions are met.
It provides structure to the daily trading routine and acts as a reference point from which to assess performance.
It is good practice to read your trading plan before every trading session and refer to it regularly throughout for guidance.
Emotions can be all consuming when money is involved causing you to make irrational decisions. A trading plan helps to remove bad decision making in the heat of the moment. When followed accordingly, your trading plan will help to limit trading mistakes and minimize your losses.
It can be difficult to know where to start especially if you have never defined a trading plan before, so we have provided a copy of The DAX Day Traders Trading Plan for your reference.
We use this plan when trading the DAX intraday.
As mentioned previously, each trader should define their own personalised trading plan which takes their circumstances and personality into account.
Above all else we encourage you to ‘Be The Bear’!
Developing the right mindset is vital to consistently achieving success when trading.
There’s no shortage of information available on this subject but for now consider the following.
When the market is difficult to read remind yourself that:
“Smooth seas never made a good sailor.”
Therefore relish challenging and choppy days as only then will you develop properly as a trader.
Learn and Practice Visualization Techniques to help you focus on your trading goals and objectives.
A managed mind is a productive and creative mind, therefore take the time to observe and understand your emotional state whilst trading.