Trading Plan

Trading is a business. As in any other business, a well thought-out plan can make the difference between success and failure. A trading plan is a pact you make with yourself. It is your personal blueprint for success. It must include not only your goals but must also detail how you plan to achieve them. Traders work alone, and so do not need to deal with many of the organizational issues confronting other business plans. But traders need a business plan (trading plan) just as much as any other business.

The three important factors that need to be strongly engrained into our minds and ultimately into our trading plans are Trading Psychology, Discipline, and a Trading System.

Trading Psychology: 선물옵션

Your mind is your main trading asset and must be guarded. How do you plan to protect yourself throughout your trading career? How will you guard against burnout? When and for how long will you take a vacation or a break from trading? (Remember, it’s OK and it’s healthy to take a break from trading). What is your plan in the event of an unusually large loss? Are there things outside your trading which heavily influence you emotionally? How do you plan to deal with them? Emotional decisions are the most destructive factor to the bottom line. Your trading plan is your protection to guard against these!

Perhaps the single most important aspect of trading and yet the one that is paid little attention to by the average trader is the psychology of trading. Traders must remain emotionally detached from the market; this is easy to say but often difficult to do. A new trader will experience a gauntlet of emotions as they enter the markets for the first time – fear, anxiety, panic, joy, even greed – these are all emotions that the greenhorn trader should not only expect but be prepared to face. You need to remain emotionally detached and act according to your trading plan. Emotional imbalance impairs your ability to make intelligent decisions.

Of course, there are other things to consider besides your emotions. Do you know why you are trading? Are you trading for the thrill, for the challenge, or to make a steady income? Whatever the reason, you will enjoy the experience more and trade better if you know your purpose. Many new traders approach the market with unrealistic expectations. Instead of seeing trading as a business which requires both time and some hard work, they see the market as nothing more than a place to make “quick and easy money.” At first they may do well but without any kind of plan in place invariably their inexperience and overconfidence catches up with them.

You must accept the fact that the market is always right and that at times you’re going to be wrong. There is no shame in being wrong, even the best traders can be in error. If you don’t admit your wrong and do something about it, fear, greed and hope can cloud your vision of the market and can cause emotional responses harmful to your trading. Do not become in love with a losing position. If you’re wrong – admit it, get out, salvage your trading capital and wait for the next trading opportunity. Conversely, congratulate yourself and feel good about a trade when you have labored according to your trading plan, regardless of the profit or loss.

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