April 29, 2010

Develop a Trading Plan

Extracted from the book: Trading in a Nutshell, Stuart McPhee

If you want to trade successfully, you need to develop and then follow a written trading plan that is right for you. All consistently profitable traders have a plan they follow, as successful traders understand the importance of having a plan to guide them in their trading actions.

I believe that many people approach the market with a sense of confidence, yet with little idea of why or how they are going to trade on it successfully. There is a well-known phrase that says: 'If you fail to plan, you are planning to fail!'

Trading Plan Model - The 3Ms!!!

1. Trading Psychology for Mindset
2. Risk or Money Management for Money
3. Trading system for Methods

1 comment:

  1. More reading can be found here: