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Developing Your Trading Plan

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Successful traders do several things that amateurs often forget. They plan a trading strategy, they follow the markets, and they track, and analyze each of their trades. The first step is building a strategic trading plan. This is often overlooked by novice traders. A trading plan does not only incorporate your strategies and how you will decide to make a trade, it will incorporate risk management as well as defined entry and exit plans.

You may have heard the adage, "if you fail to plan, you plan to fail." This is particularly true in online trading as well as investing. Successful traders start with a sound plan and they stick to it at all times. This will help take the emotion out of your trading.

Choose the assets that are right for you
  • Trading goals
  • Your trading strategy
  • Deciding how long you will stay in a position
  • Set your targets
  • Set your risk tolerance
  • How to set up your trading log
  • How to evaluate your performance

Be aware trading carries risk and not all strategies or rules work the same every time or have the same results for each trader. You should always understand your risks.

Barry Norman
The Director of Investors Trading Academy as well as a published author and educator. Barry brings with him over 35 years of financial market knowledge and experience. He holds an MBA in Finance and Economics from UCLA and an undergraduate degree in Economics from the University of Maryland. Barry was award the title of “Best Education in Europe” by Global Banking & Finance. Barry is also a presenter for the MoneyShow and many well-known news sources.
Developing Your Trading Plan
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