Plan Your Trade
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
Buy__ Sell Short __
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? ___________
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