Stock Trading Plan Example - Why You Must Have One To Trade Successfully
Stock Trading Plan Example
This is the continuing story of our two imaginary traders, Peter and Paul.
Peter is a professional trader, Paul is not. Peter has a tested, proven, written trading plan that he follows each time he enters a trade, Paul does not.
Peter and Paul have had vastly different Stock trading experiences - Peter has just made another substantial profit - this time from the Bear market, Paul has lost heavily.
A chance meeting with Peter's group of friends one day at lunch launches Paul on a learning curve that will see him become a good trader, but not without some hard lessons along the way.
Today Peter shares his trading plan and the importance of having a trading plan with Paul.
"Today we will work on your Trading Plan," Peter told Paul as they sat down for the start of their next weekly mentoring meeting.
Peter handed Paul a copy of Robert Miner's book, Dynamic Trading, and said, "Here, read this section of this wonderful trading book." Paul read to himself quietly as Peter poured them both a cup of coffee.
"The purpose of Technical Analysis is not to be able to accurately identify every market position, all of the time. While this may be the daydream of many analysts and most amateur traders, it is an impossibility. Stock Trading Plan Example
"Every method of technical analysis has it's limitations and at times will provide contradictory information. Unless the analyst, trader or investor is willing to accept that his or her analysis will from time to time not provide a confident opinion of market position, he or she is doomed to failure.
"The objective of technical analysis is to identify those market conditions and the specific trading strategies that have a high probability of success.
"If there is a key concept associated with trading and investing, it must be probability. All consistently profitable traders and investors know that every trading and investing decision only has a probability of success, never a certainty.
"Losses are inevitable and are just as much a part of successful trading as profits. If a trader has a successful trading plan, he or she should have no more emotional response to a loss than to a win. Each will be inevitable.
"While it may be difficult to maintain a completely non-emotional relationship to trading and investing, an understanding that trading is a Business of probabilities will go a long way towards developing a stable attitude towards the Business. Stock Trading Plan Example
Stock Trading Plan Example - Why You Must Have One To Trade Successfully
By: Trading Expert Purchasing Quality Men's Socks Online Use These Tips Make Money Online With Affilates: How to Make Money Online with Affiliates Affilate Products: How to Make Money Online with proper SEO Cheap Luxury Hotels Online En Que Invertir Y En Que No Invertir Online Hassle Free Online Flight Booking How An Seo Services Company Can Help Your Online Profile Watch Philadelphia Eagles vs Detroit Lions in Live HD Online PC2TV Watch Oakland Raiders Free Online Live Good Nike Air Max Shoes Online Free Online Poker Idol Ruses on Online Bets Can a Photographer Take a Picture of a Trademark?