Introduction - General Trading Description
The intent of the Trading Plan Planner (TPP) is NOT to provide all the necessary steps andanswers for a detailed trading plan. The intent of the TPP is to guide the trader through a logicalplanning process to create a trading plan that can be refined over time.
Each trader’s approach and style will vary according to his/her
demeanor. Therefore, each TPPwill be different for each trader
customized to meet the needs of the relevant individual. Thisdocument is merely a template with guidelines to which you may add, delete, and/or revise anyitem that will assist you in successful trading.Use this section as an Introduction to your Trading Plan. Start with listing and explaining thefundamentals of your trading style. The following questions may assist you in doing so.
Make your responses professional, complete, and concise.
What style (e.g., scalping, day trading, and position) and type (e.g., long or short) of trading strategies will you be using?2.
What securities and instruments (e.g., futures, stocks, options) will you trade?3.
In what markets (e.g., NASDAQ, NYSE, and FOREX) will you trade?4.
What are the
primary “most favorably traded” instruments
(e.g., e-mini(s)) that are tradedby professionals in these markets?5.
Are there any reasons to be concerned about what markets and instruments you are goingto trade (e.g., product expiration, new competing products, etc.)?6.
Will your strategies be automated or will they require you to execute them manually?
Many traders have a brief mission statement, usually in fifty (50) words or fewer, explainingtheir reason and passion for pursuing trading and their guiding principles.If you want to draft a mission statement, this is a good place to put it in your trading plan,followed by trading goals and objectives.
Trading Goals and Objectives
Trading decisions are often made in milliseconds, resulting in both favorable and/or unfavorableoutcomes. The impulse of your trading decisions can lead to potential gains or losses andprovides a critical foundation for why having clearly defined goals is essential. With changingtechnology, changing demands on traders, and increased sophistication, trading haphazardly maybe viewed as potential trading suicide.
are final outcomes of where you want your trading to be.