Evening. Today I found a video on YouTube that speaks about what you need to think about and consider while developing a Trade Plan. I have no clue who this guy is, what his background is or what kind of education he has but he does bring up some good points to mull over. Here is the video which I recommend watching as the speaker discusses each point briefly followed by my short response/thoughts on the first couple points.
Why Trading?
This seems like a simple question. MONEY. If you’re not doing this for the cash you’re a nerd. Truly that is my motivation in stepping into the world of trading. It seems arrogant of me to say that however it’s the truth. I am a civil servant and I did not volunteer for the money. I stepped up to serve proudly which I still do today and every day. ‘Merica. However, that doesn't mean I don't want money so that I can live comfortably. A little (or a lot) of extra money in my savings account, retirement account and pocket wouldn't hurt.
Having said that I know there are plenty of ways to make money other that on the stock market. Here's my reasoning behind my attempt at trading for extra cash off the top of my head. It is flexible around my work schedule which is huge. It’s a skill I can acquire right here at my computer at my own pace. It’s a skill that will be useful for my entire life. It’s interesting to me (big one). It’s a challenge. It’s directly in my hands whether I am successful or not.
What do you Hope to Gain?
As he says in the video this rolls into my previous answer. The answer is MONEY. No shame here. It’s why I'm here.
What Separates You?
I've told you before that I'm not the sharpest tool in the shed. I am a little OCD and my thoroughness when I attack new challenges is second to none. It’s my drive to be prepared in every way that separates me for those who just throw money in the market on hunches and feelings. Being unprepared to me is one of the worst feelings you can have in my opinion and I'll do anything to avoid it. You can guarantee that I'll put my time in learning the skills I need to be successful in the high stakes world of trading.
What are your weaknesses?
All of them. Yeah this one is tough because I am so new to trading. I'm not good at anything as of yet but just you wait.
What is your plan to address your weaknesses?
Episode I talks all about my master plan to become successful and eliminate my weaknesses. For now it’s all about obtaining the knowledge required and developing the skills to be a master trader.
How much time do you have to devote to trading?
This one is tough for me. I have at times a very unpredictable life schedule. It’s one of the reasons I believe trading is a valid option to make money because it too is flexible. Having said that I believe I can spend 1-2 hours a day on my trading during the week.
What is your style of trading?
I talked about this in Episode II. I will be swing trading based on the amount of time I have.
What markets will trade?
I do not have the answer to this question as of yet. I am not knowledgeable enough on each market to truly understand the pro's and cons of each and which is the right market for me. I'll have to come back to this.
Side note: He mentions 24 hour markets during this part of the video and I have never heard of that. Will have to do some research.
What is your Time Management Plan?
This is also somewhat hard for me to hash out at this point as I don't yet know what all goes into the trading process. This will be a work in progress but for now I will follow his rough example.
00-30 min: Review the day’s news
31-60 min: Review trades I'm currently in or completed trades
61-100 min: Research new possible trades
101-120 min: Execute new trades
Rough but it’s a start. I will expand and adjust as I learn and refine my own process.
What is your entry criteria? /What is your exit criteria?
Pass ... I dunno.
Alright first 10 down. I'll tackle the second 10 tomorrow. Feeling like this is more of a confidence exercise to make sure you have actually thought through what you’re getting into. Fine with me. Till tomorrow.
-RJL
*CAUTION*
The author of this blog is inept in the writing of the English language. He has no clue what he is doing and is sorry for the run on sentences, countless typos, horrific sentence structure, lack of vocabulary, blatant misuses of pronunciation and overall suck. He doesn't proofread and is too embarrassed to ask others to do it for him. He offers his sincerest apologies for your bleeding eyes.
*CAUTION*
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