How to Write a Stock Trading Plan - Written Stock Trading Plan Example Template
1. TRADING IS A BUSINESS, SUCCESSFUL BUSINESSES ALWAYS HAVE PLANS
- Businesses that are successful always start with a plan.
- Successful business planning will guide you to success, think of stock trading trade plan as a map; it is a constant reminder of how you will consistently pull profits from the stock trading market.
- Difference between a successful trader and a losing stock trading one is the stock trading trade plan.
2. TO KEEP ME IN THE RIGHT DIRECTION
Consistency is important in your routine to measure how successful you are.
Keep you on target, read the stock trading trade plan every day and stick to its trading rules.
When it comes to your plan you should think of it as a map that shows you this is what you follow, it should have clear rules that specify when you open or close a transaction.
Your stock trading plan should cover all aspects of stock trading, you should read the stock trading plan every day until it is on your fingertips so that when you are transacting on the fast moving market of stock trading you will always know what to do in every situation.
Your stock trading plan can be as simple or as complicated as you like, but the most important thing is that you have one. By having a one you have an advantage over the stock trading market, you will have better odds of making a profit than those who do not have one.
This stock trading plan checklist tutorial topic provides with an example stock trading plan template that you can use for creating your own stock trading trade. By now you have already written down the justification part of your stock trading plan template, If not get a pen and paper and write the justification part. Next we shall look at how to write the system.
Stock plan is one of the secrets that can help you to improve your profits. A good stock trading training guide like this one should show you how to come up with one using a stock trading plan template which you can use as an example to develop your own stock trading trade plan.
One of the most common question is, Is Stock profitable? one of the methods to make it profitable is to have a good plan.
IF YOU HAVE A GOOD BUSINESS PLAN AND YOU ARE DISCIPLINED ENOUGH TO STICK TO IT YOU WILL BE SUCCESSFUL.
GOALS OF THE TRADING SYSTEM
- Ability to IDENTIFY A TREND AS EARLY AS POSSIBLE .
- Ability to AVOID WHIPSAWS .
The stock trading trade system should find a compromise between the two Goals,
Find a way to identify a stock trading trend as early as possible but also find ways to help you distinguish the fake signals from the real ones.
FUNCTIONS OF EACH INDICATOR
MA - Identify a new stock trading trend as early as possible.
MACD - Identify a stock trading trend as early as possible.
Determine strength of a continuing stock trading trend.
RSI - Swing failure to confirm the start of a new stock trading trend.
Extra confirmation tools to help determine the strength of our stock trading trend.
Parabolic SAR - Help to ensure that we are not caught up on the wrong side of the trend.
Stock Trading Trend Lines - Signals a reversal when the line is broken
Stock Price Action Signals - confirm the weakening of a trend.
Bollinger Bands - for stock price action study
To learn more about each indicator and how these indicators can be used to generate trading signal setups you can go to the Technical Stock Trading Indicators Section
Stock Trading CHART TIME FRAMES
- Main time frame is the 1H.
- Signals are generated on the 15 minute time frame.
15 Minutes Charts
- Stock Trading Trend Lines (Support&Resistance)
- 5 & 7 LWMA
- RSI (14)
- Bollinger Bands (20, 2)
LONG ENTRY BUY TRADE
15 Minutes Stock Trading Charts
- Both MAs are moving UP
- MACD moving UP
- RSI > 50
- Parabolic SAR is below the stock price (Support)
When signal is generated on the 1 Hour Stock Trading Chart, use the 15 minute stock trading chart time frame to open and close positions.
- RSI gives opposite signal
- Stock Price breaks Support Stock Trend Line
- Parabolic SAR is hit (Trailing Stop)
SHORT ENTRY SELL TRADE
15 Minutes Stock Trading Charts
- Both MAs are moving DOWN
- MACD moving DOWN
- RSI < 50
- Parabolic SAR is above the stock price (Support)
When signal is generated on the 1 Hour Chart, use the 15 minute stock trading chart time frame to open and close trade positions.
- RSI gives opposite signal
- Stock Price action breaks Support Stock Trend Line
- Parabolic SAR is hit (Trailing Stop)
- Signals are generated using 1H stock trading chart time frame and executed using the 15 minute stock trading chart time frame.
- Trading signal to be executed immediately stock trading rules are met.
- Entry alert signals should be executed during daytime.
TIME OF DAY TO WATCH MARKET - MARKET HOURS
Watch market during daytime when most companies and online stock trading brokers are open for stock trading transactions. Use this to come up with a suitable stock trading schedule.
Example Stock Trading System
Tips - You can use the MT4 Stock Trading Platform Software to save this as a stock trading template that way you do not have to lay it afresh every time you open a new stock trading chart. If you want to learn how to save a stock trading plan template on the MetaTrader 4 stock trading platform, read: MetaTrader 4 Stock Trading Platform Tutorials.
Stock Trading Money Management
- Day trading - Low risk High return method
- Trade when I have a high risk to reward ratio 3:1 or more
- Stop loss = Parabolic SAR
- Set TP target 40-60 Stock Trading Pips
- Never transact beyond 3 % of account equity
- Never risk more than 2 % on a single stock trading trade transaction
- Trade without Emotions (greed, fear, anticipation, impulse, bias, over-excitement)
- I trade what my eyes see not what I feel.
- I will be patient.
My job is not to be the stock trading system!
It is not to decide which signal looks promising.
That is the job of my stock trading system - which has a set of stock trading rules which tells me this is what I follow. Do not get caught up in stock price action and make rules as you go along.
MY JOB DESCRIPTION IS
To sit patiently and wait for my stock trading strategy to indicate that it is time to enter or it is time to exit. And then with great focus I execute the stock trading plan as outlined.
Taking trades not indicated by the stock trading system, second guessing it and not taking signals given, hesitating and getting in late, anticipating and getting in early are all common place and boil down to lack of faith in the plan and not having a burning focus on accurate execution.
GOAL: To have 100% undivided focus on mastering my ability to execute my Stock trading rules accurately.
The more you develop the ability to step back from stock price movement and watch the stock trading market dispassionately, waiting for a stock trading signal, the easier it will be to witness the fluctuations of your emotions without getting sucked into them allowing them to throw you off your game.
- I am greedy.
- I over-trade
- Make a list of all your weaknesses that are interfering with your trading. This is the first step to help you overcome these weaknesses. Use Stock psychology to help you overcome them.
NB: by writing down your weaknesses you will start recognizing them as you make progress, once you do this you will start to avoid this mistakes and your stock trading results will improve.
- To focus on exit just as much as I do on entry signals.
- Always protect my stock trading account using stop loss, stock trading money management methods, follow with the stock trading trend direction and always following the trading rules of my stock trading strategy.
- Never second guess or go against my stock trading strategy.
To always keep up my discipline.
- Follow all the rules of my Stock trading strategy and never break them.
- Transact fewer times and execute all my stock trading signals correctly.
Trade what I see, what the stock trading system + stock trading charts are telling me.
- Sit patiently and wait for signals from my stock trading strategy.
- Achieve consistent stock trading results before opening a live stock trading account.
FOLLOW THIS Stock Trading SYSTEM
This is the most important part of creating the stock trading system.
Always follow the stock trading rules
Stick with the stock trading rules
Be disciplined and patient enough
Stock Trading JOURNAL
Log all my trade transactions in a stock trading journal so as to track my training progress and improve my stock trading execution trading methods.
This stock trading strategy uses momentum to determine the stock trading trend of any stock trading instrument.
Even if you are new to Stock trading market and you do not know how a stock trading system looks like, this stock trading system template example illustrates to you how a Stock trading strategy should look like, the Stock tutorials explained in other sections of this training website will also explain further the different aspects that you need to learn.
Hence, the aim is to help you come up with your own complete stock trading strategy that is if you are looking for one, by showing you one that is already complete. In fact you can just use it as it is, or make a few adjustments so that it suits your stock trading style.
The aim is to help you improve your stock trading results by using a stock trading plan, and another advantage is that this stock trading trade plan will offer you a chance to improve your knowledge and it will help you improve your stock trading results and help you make pips when stock trading and keep them so that you do not keep giving them back to the stock trading market.
Read this stock trading plan training tutorial about developing a stock trading trade plan of your own, along with the learn stock trading courses and Stock trading strategies listed at the top of this learn stock trading tutorial website.
The Most Beneficial part of using this stock trading plan template is the Stock Trading Money Management Part you will learn how to trade stock and minimize risk, which is the most important thing when it comes to trading the stock trading market.
How to Write a Stock Trading Plan - Written Stock Trading Plan Example Template - How to Come Up with a Stock Trading Plan Example - How to Create a Stock Trading Plan Example Template Explained