Hello Trader,

The Trading Plan

Today I’m going to start a 2-part series on the importance of your Trading Plan.

Part 1

The trading plan is basically like a business plan.

The trading plan is your roadmap to successful trading as a business plan is your roadmap to running a successful business.

The roadmap analogy brings to mind a recent cross-country road trip that I took. I could not imagine even leaving the house to go on that cross-country road trip without having a map, that is knowing where I was going, and how I was going to get there.

The point here is that I wanted the information about the journey prior taking the journey. I wanted information organized and I want to feel comfortable about the direction I was going. I suppose I could have just jumped in the car and just started driving, basically driving West because I knew that was the general direction that I wanted to go in.

Can you imagine doing that? Not me!

I would have been nervous the entire trip, especially since I would couldn’t have known if I was traveling in the correct direction or not.

Now you may say that I could’ve just bolted from the house and jumped in the car. Then you could have gotten out of the car and asked for directions periodically… But do you really think that would have been the most efficient method to get from point A to point B? I can already tell you that the answer is no.

You’ve heard the saying that even the greatest or longest journey begins with a first step. This is absolutely true…

The first step should not be taken without a plan.

Now I know what some of you are thinking. You’re thinking hey I can just wing it, shoot from the hip. You know, I mean I’m that kind of intuitive person. You may very well be that type of person. You may be the person with that level of connection with the markets that is very, very rare… But why take the chance that you are not. Simply construct a simple trading plan and get your journey started off in the right direction.

You’ll receive Part 2 of The Trading Plan in a few days… Until then…

Good Trading and Good Life!

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