How to Write a Good Stocks Plan

stock trading plan checklist - the following is a template example of a stocks plan template example:

JUSTIFICATION

1. Stock 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 stocks trade plan as a map; it is a constant reminder of how you will consistently pull profits from the stocks market.
• Difference between a successful trader and a losing stocks one is the stocks trade plan.

2. TO KEEP ME IN THE RIGHT DIRECTION when Trading Stocks

Consistency is important in your routine to measure how successful you are.

Keep you on target, read the stocks 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 stocks plan should cover all aspects of stocks, you should read the stocks plan every day until it is on your fingertips so that when you are transacting on the fast moving market of stocks you will always know what to do in every situation.

Your stocks 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 stocks market, you will have better odds of making a profit than those who do not have one.

This stocks plan checklist tutorial topic provides with an example stocks plan template that you can use for creating your own stocks trade. By now you have already written down the justification part of your stocks plan template, If not get a pen and paper and write the justification part. Next we shall look at how to write the system.

Stocks Trading plan is one of the secrets that can help you to improve your profits. A good stocks training guide like this one should show you how to come up with one using a stocks plan template which you can use as an example to develop your own stocks trade plan.

One of the most common question is, Is Stocks Trading profitable? one of the methods to make it profitable is to have a good plan.

IF YOU HAVE A GOOD Stock Trading PLAN AND ARE DISCIPLINED ENOUGH TO STICK TO ITS Rules When Stock Trading, YOU WILL BE SUCCESSFUL.

GOALS OF THE TRADING SYSTEM

1. Ability to IDENTIFY A TREND AS EARLY AS POSSIBLE .
2. Ability to AVOID WHIPSAWS .

The stocks trade system should find a compromise between the two Goals,

Find a way to identify a stocks 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 stocks trend as early as possible.

MACD - Identify a stocks trend as early as possible.

Determine strength of a continuing trend.

RSI - Swing failure to confirm the start of a new stock trend.

Extra confirmation tools to help determine the strength of our stock trend.

Parabolic SAR - Help to ensure that we are not caught up on the wrong side of the trend.

Stocks Trend Lines - Signals a reversal when the line is broken

Stocks Price Action Signals - confirm the weakening of a trend.

Bollinger Bands - for stocks 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 Indicators Section

CHART TIME FRAMES

• Main time frame is the 1H.
• Signals are generated on the 15 minute time frame.

15 Minutes Charts

• Stocks Trend Lines (Support & Resistance)
• 5 & 7 LWMA
• RSI (14)
• Bollinger Bands (20, 2)

RULES

LONG ENTRY

Entry

15 Minutes Charts

1. Both MAs are moving UP
2. MACD moving UP
3. RSI > 50
4. Parabolic SAR is below the stocks price ( Support )

When signal is generated on the 1 Hour Stocks Chart, use the 15 minute chart timeframe to open and close positions.

LONG EXIT

1. RSI gives opposite signal
2. Stocks Price breaks Support Stocks Trend Line
3. Parabolic SAR is hit (Trailing Stop)

RULES

SHORT ENTRY

Entry

15 Minutes Charts

1. Both MAs are moving DOWN
2. MACD moving DOWN
3. RSI < 50
4. Parabolic SAR is above the stocks price ( Support )

When signal is generated on the 1 Hour Chart, use the 15 minute chart timeframe to open and close trade positions.

SHORT EXIT

1. RSI gives opposite signal
2. Stocks Price action breaks Support Stocks Trend Line
3. Parabolic SAR is hit (Trailing Stop)

ROUTINE

1. Signals are generated using 1H stocks chart timeframe and executed using the 15 minute chart timeframe.
2. Trading signal to be executed immediately trading rules are met.
3. 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 stocks brokers are open for transactions. Use this to come up with a suitable program.

Example Trading Plan Template

Tips - You can use the MT4 Stocks Software to save this as a stocks template that way you do not have to lay it afresh every time you open a new stocks chart. If you want to learn how to save a stocks plan template on the MetaTrader 4 stock platform, read: MetaTrader 4 Stocks Platform Tutorials.

Stocks 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 Stocks Pips
• Never transact beyond 3 % of account equity
• Never risk more than 2 % on a single stocks trade transaction

Stocks Trading MINDSET/PSYCHOLOGY

• 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 stocks system!

It is not to decide which signal looks promising.

That is the job of my stocks system - which has a set of stocks rules which tells me this is what I follow. Do not get caught up in stocks price action and make trading rules as you go along.

MY JOB DESCRIPTION IS

To sit patiently and wait for my stocks strategy to indicate that it is time to enter or it is time to exit. And then with great focus I execute the stocks plan as outlined.

Taking trades not indicated by the stocks 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 Stocks Trading rules accurately.

The more you develop the ability to step back from stocks price movement and watch the stocks market dispassionately, waiting for a stocks 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.

WEAKNESS

1. I am greedy.
2. I over-trade
3. 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 Stocks Trading 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 results will improve.

GOALS

• To focus on exit just as much as I do on entry signals.
• Always protect my account using stop loss, stocks money management methods, follow with the stocks trend direction and always following the trading rules of my stocks trading strategy.
• Never second guess or go against my 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 signals correctly. Trade what I see, what the system + stocks charts are telling me.
• Sit patiently and wait for signals from my strategy.
• Achieve consistent stocks results before opening a live stocks trading account.

FOLLOW THIS Stocks Trading SYSTEM

This is the most important part of creating the stocks system.

Always follow the trading rules

Stick with the trading rules

Be disciplined and patient enough

Stocks JOURNAL

Log all my trade transactions in a stocks journal so as to track my training progress and improve my stocks execution trading methods.

This stocks strategy uses momentum to determine the stocks trend of any stocks.

Even if you are new to stock trading market and you do not know how a stocks system looks like, this stocks system template example illustrates to you how a stock trading strategy should look like, the Stocks Trading 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 stocks 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 stocks style.

The aim is to help you improve your stocks results by using a stocks plan, and another advantage is that this stocks trade plan will offer you a chance to improve your knowledge and it will help you improve your stocks results and help you make pips when stocks and keep them so that you do not keep giving them back to the stocks market.

Read this stocks plan training tutorial about developing a stocks trade plan of your own, along with the learn stocks courses and stock trading strategies listed at the top of this learn stocks tutorial website.

The Most Beneficial part of using this stocks plan template is the "Stock Money Management Part" you will learn how to trade stock trading and minimize risk, which is the most important thing when it comes to trading the stocks market.

Stocks Plan Checklist - How to Develop a Trading Plan in Stocks Trading - Stocks Plan Example - Stocks Plan Doc