Before ever clicking on that Buy or Sell button, you must have a trade mapped out. It should be detailed and precise and it should be followed. There should be no exceptions.

The Set Up

Stock______

Buy__  Sell Short __

Pattern __________

Entry ______

Protective Stop ________

Initial Profit Target______

Trailing Stop (how) ___________

Confirmation of Trend (or Transition) from Market______Sector_______Other stocks within sector________

How are you?—any major (or not so major!) crises in your life?

The Gray Area

Describe what discretionary techniques you might consider (e.g. Front running, Playing Opening Gap Reversals”entries, etc). Keep in mind that the larger the “gray area”, the more decisions need to be made during the “heat of battle.” Items that re-occur frequently here should become part of the “Plan Your Trade” section.

Trade Your Plan

Actual: Entry ____

Initial Protective Stop_____

Where did you take partial profits (if offered)________

Did you honor your stop?_____

How/Where did you trail your stop? ___________

Post Mortem

Did you deviate from the plan?

Was this deviation profitable?

Was it following sound trading practices?

How are you?

 

Thanks to Dave Landry for this Trading Plan