Share
G'day Harry
First off, mate I appreciate you asking me for advice, it is an unexpected sign of respect, and I thank you very much for that.
I am a little concerned, as I am far from being a master trader yet, and so please understand that what I am imparting below is my take while I am still learning...
Students can teach each other, a true master would be better. Be that as it may... Here's the best I have got... And I'll pop it out here, so that others can read and contribute if they will or rubbish it if they see fit. I beleive in what I write.
Okay,
Regarding trading plans... or my take on them
Ultimately, I beleive trading plans are personal, in that our own individual psychology will determine how we trade and what we trade with.
Truth be known, I beleive that establishing your own trading plan is an important and paramount part of becoming a successful trader, part of the journey so to speak.
So, what I am saying is basically, my trading plan is my own, and there is no point me "giving" it to you, as I might as well be giving you a black box that you should have no faith in.
As well, my plan is an evolving thing, constantly being refined as I learn new techniques and ways of looking at price.
However, here are the basics, and I think you are in a strong position to sort out your rules, in that you have held the course by testing your theories on a practise account.
Note Very Well Though... this is what works for me, how you apply rules must ultimately be your decision and based on who you are.
Quick Soldier's Five for a trading plan and trading rules:
1. Identify Patterns and price setups that you can HONESTLY say you can have a reasonable expectation of a tradeable outcome from. (I beleive you have already done this)
2. Identify the signals that give you a legitimate entry to an expected positive trade, and identify where you expect your trade to complete (entry and target). (I beleive you have already done this)
3. Place your trade WHEN entry signals occur, not before or after. Let the Market come to you, do not try to pre-empt it and do not try to get in after a move has begun. Place your trade as a number of contracts, not a single contract.
4. If Price does not perform in the manner in which you expected it to... that is, the pattern or signals that you entered on break, exit the trade.
5. If Price reaches your target, close a majority portion of your contracts and set a stop to enable you to break even as a minimum on the remaining. If price continues to move in your favour, raise the stop in an attempt to get as much as possible from the trade.
Personally, most of my trades are based on MACD divergence signals, and I fade into positions. That is I buy or sell a number of contracts over time as the final signals present.
I do this in the latter part of what I define as a "whooshka" move... you've no doubt seen me describe this several times here on the FOREX thread, as well as on the XJO thread. I don't know anyone else who trades this way, though I am sure there are many out there... however for me it is a particular set of signals and price target that I have personal great confidence in after a hell of a lot of research and testing. This style would not suit everyone.
On top of all this, there are two books that I strongly recommend:
Come into My Trading Room by Elder Alexander THis will help you sort out a plan, and give you some good indights into t/a
Trading in the Zone By Mark Douglas This will give you fantastic insight into the mindset of a successful trader.
And, to cap it all off, You've Got Mail...
;)
