Goal setting Having something to strive for should be an essential part of your trading plan. It is how we develop and ultimately progress. Goal setting is a component that should not only focus on financial objectives; it should also look at developmental goals as well. Some examples of developmental goals might be: Sticking to … Continue reading How to Build a Trading Plan: Part Four
Trading strategies As you can probably imagine, trading strategies vary according to the individual trader. Despite the differences, each trading plan should display clearly defined rules of engagement for both entry and exit signals. A setup is essentially a repetitive ‘pattern’ that provides a high-probability signal to trade the market. Whilst we recommend noting each … Continue reading How to build a Trading plan: Part Three
As briefly highlighted in part one, the staple behind any respectable trading plan will place a strong emphasis on risk and money management principles. What is your overall market risk? Overall market risk is the maximum permissible amount of capital at risk at any one time. As an example, let’s say that we have set … Continue reading How to Build a Trading Plan: Part Two
What kind of response do you think you’d receive if you were to ask ten willing traders for a copy of their trading plan? Our guess is less than 30% would reply. This highlights a clear problem and may help address why so many find it difficult to accomplish their goals in this business. A … Continue reading How to Build a Trading Plan: Part One
Nowadays, modern trading platforms offer a rich diversity of technical indicators – you could say you’re almost spoilt for choice. The Metatrader 4 platform (MT4), for example, comes fully loaded with 30 built-in indicators and 2000+ custom indicators. Unfortunately, this often draws newer traders into unchartered terrain. Understanding the subtle nuances and testing each indicator … Continue reading Top 3 Technical Indicators All Serious Traders Should Know
