Psychology Getting Started Money Management Trading Plan Template

In order to succeed as a professional trader, it is often said that the aspirant must treat trading "like a business". As with many of the clichéd phrases that litter the metaphorical trading floor, the importance of this statement is often overlooked, or the meaning misunderstood.

The following article by Tim Wilcox aims to address these problems by examining some of the ways in which a trader might go about achieving this vital goal.

It is divided into two sections: a general overview of what constitutes a trading plan and why it is prudent to have one, followed by a detailed analysis of the various aspects that should be considered during its creation, for example, the importance of self-awareness, discipline and risk management. Though the article is aimed principally at novices, traders of all standards are likely to find something useful within its pages.

Since the "Trading Plan Template" is considerably longer than our other articles, we have provided it as a pdf document, both for convenience and to preserve the original layout. Please click the link below to download it.

Trading_Plan_Template

 

[6th-high]

just one thing i wanted to ask actually;

in section 10.7 probability of a successful trade, at the start of the paragraph it says in order to calculate this we must identifiy the trade set up, it must be crystal clear etc.

but then further down it says 'don't get to bogged down in details...(entry tirgger, exit stop loss etc.)

thing is i thought the trade set up was those things, so how can a trade set up be crystal clear if you don't detail the latter points?

either that or please tell me how to define trade set up

thanks

 

[ForexLion]

Looks like we are done here.

 

[maccauk1]

Easily the dullest thing I have read life, but there are a few valuable poins in there.

 

[konn]

We've just published a new T2W article called "Trading Plan Template" by Tim Wilcox.

Quick Summary: An informal, step-by-step template to help novice traders create a comprehensive trading plan.


Author suggests readers to share their plans and have discussions. How would I upload one and what is an appropriate thread? Any interest in discussing ohter people trading plans?

 

[ECDI]

re: trading Plan Template

Thanks timsk - No matter how simple, or how complex, there is always something in it for everyone - if they will only open their eyes and look.

Much appreciated

 

[timsk]

Author suggests readers to share their plans and have discussions. How would I upload one and what is an appropriate thread? Any interest in discussing ohter people trading plans?

Hi konn,
Welcome to T2W.

You're welcome to add and discuss other people's trading plans - either to this thread or, alternatively, start a bespoke thread in the Home Trader forum or the Education Resources forum perhaps.

You can easily attach a wide range of file types to your posts by scrolling down to the box headed 'Additional Options' and clicking on the 'Manage Attachments' button in the 'Attach Files' box (2nd box down).
Tim.

 

[blackfighter]

thanks

A great help to me

 

[timsk]

A great help to me

Hi blackfighter,
Welcome to T2W! Glad the Trading Plan Template was of help.
Tim.

 

[Captain Currency]

I've read this pdf guide a few times already and its as straight forward as they come. Funny thing is it always stirs-up my juices and throws me a smart idea or two that I can draft into my own 3 Ducks trading plan straight away.

Well done Tim!

Andy
Captain Currency.

 

[aag100]

Hi everyone! New to the Forum. I few weeks ago I downloaded the Trading Plan Template and set about completing it. I have been searching for a long time for something like this, and I am glad I went through the painful, laborious process of completing it. Well, in the end I actually enjoyed it and I think I may have overdone it a bit. But it has opened my eyes to many of the mistakes I made in the past. Anyway here is my version of my trading plan (I added a few bits to it not in the original). Thanks Tim, the template helped me in a big way!

still in the game?

 

[MarcD]

Trading Plan

Just starting out and doing a lot of reading. Can you recommend/direct me to examples of trading plans for stock traders day trading specifically. Thank you.

 

[eliteeservices]

Great template.

Can we use this for our Forex clients? www.fortresscapitalinc.com

 

[timsk]

Can we use this for our Forex clients? www.fortresscapitalinc.com

Hi eliteeservices,
I/we appreciate your courtesy in asking the question - thank you!

The Trading Plan Template is free for anyone to download. If you're going to promote it in some way to your clients, then we would request that you include a link to T2W. Anything positive you may wish to add about the site - is entirely at your discretion.
Tim.

 

[foroom lluzers]

Very well put !Trading success is 20 % skill 80 % psychology

copy from plan

T RADING PLAN TEMPLATE
5. Know Yourself, Know Your Purpose
5.1 Almost any professional trader will tell you that the key to success in the markets
lies in understanding your own psyche. (Understanding the psyche of fellow traders,
collectively referred to as ‘sentiment’, is also an invaluable tool). Many inexperienced traders
are unprepared for the violent assault on their thoughts and emotions at the start of their
careers. They soon find their heads spinning with euphoria when winning (greed) and the pits
of their stomachs knotted with anxiety when losing (fear). Contrast this with many
professional traders who, it is said, achieve a sort of trading nirvana, whereby their thoughts
and emotions blend into a sea of calm regardless of whether they are winning or losing. Their
heads do not spin and their stomachs do not churn – ever. For you to achieve this exalted
state, you will need to know yourself and how you will react to both winning and losing
positions. Once armed with this information, your trading plan can incorporate some of the
positive aspects of your psychological make-up and filter out some of its negative aspects.

 

[T-Rex68]

Hallo
TP link seems nor working anymore

 

[timsk]

Hallo
TP link seems nor working anymore

Thanks for flagging this up T-Rex68.
@Sharky - can this be fixed please?
Thanks,
Tim.

 

[Sharky]

Thanks for flagging this up T-Rex68.
@Sharky - can this be fixed please?
Thanks,
Tim.

Apologies for the delay, just spotted this now. I've fixed the link on the article, so you can now download the template @T-Rex68

 

[talkar81]

Thanks to Tim for the excellent document - really appreciate the content. I have one question, in the document it says "..it is almost impossible to day trade using spread-betting." And it implies that spread-betting is better suited to swing trading. Could anyone clarify why this is the case?

 

[timsk]

Thanks to Tim for the excellent document - really appreciate the content. I have one question, in the document it says "..it is almost impossible to day trade using spread-betting." And it implies that spread-betting is better suited to swing trading. Could anyone clarify why this is the case?

Hi talkar81
Welcome to T2W.

The Trading Plan Template was written well over ten years years ago at a time when spread betting (SB) was far less sophisticated than it is now and when spreads were a lot wider than they currently are. So, in those respects, SB today is a very different beast to what it used to be and, possibly, may now be a suitable vehicle to use to day trade. That said, traders are still betting against the broker (i.e. the SB firm) as it is they who are on the other side of the trade, just like bookmakers are on the other side of punters bets and almost always comes out on top (in the long run anyway) while their punters lose their shirts. That's not to say there aren't successful day traders who use SB firms - there will be - but they'll be a minority of very experienced traders who understand completely the limitations and pitfalls of SB platforms and use them accordingly. Consequently, most experienced members on T2W will still advise novice or inexperienced traders:
A. Not to start out by day trading, and . . .
B. If they insist on day trading from the get go, not to use a SB firm.

I hope that clarifies the situation for you.
Tim.

 

[talkar81]

Hi talkar81
Welcome to T2W.

The Trading Plan Template was written well over ten years years ago at a time when spread betting (SB) was far less sophisticated than it is now and when spreads were a lot wider than they currently are. So, in those respects, SB today is a very different beast to what it used to be and, possibly, may now be a suitable vehicle to use to day trade. That said, traders are still betting against the broker (i.e. the SB firm) as it is they who are on the other side of the trade, just like bookmakers are on the other side of punters bets and almost always comes out on top (in the long run anyway) while their punters lose their shirts. That's not to say there aren't successful day traders who use SB firms - there will be - but they'll be a minority of very experienced traders who understand completely the limitations and pitfalls of SB platforms and use them accordingly. Consequently, most experienced members on T2W will still advise novice or inexperienced traders:
A. Not to start out by day trading, and . . .
B. If they insist on day trading from the get go, not to use a SB firm.

I hope that clarifies the situation for you.
Tim.

That's really helpful Tim - thanks very much for taking the time to respond to my query!