Hello all. Thanks for all the help you have given me so far.
I have started to work on my trading plan template and would like to open each step of it up to comment. I am not sure if it is proper to do this here, but if it isn't then please let me know and I will edit or delete this message.
My template is based on the template posted right here in the beginners forum stikied under the title "Trading Plan Template" I am using v1.2 posted by Isotonic.
Any comments or constructive criticism is welcomed.
thanks,
Matt
1. Self Assessment
<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o
></o>
1.1 Why do I want to be a trader?
<o></o>
· I want to be a trader because . .
o I want to become a trader because it seems like a natural progression for me and I love the idea of being able to formulate a system of my own design which I implement for the purpose of a profit. I like the idea of being able t omake my own decisions and run my trading my own way.
· My primary objective in wanting to be a trader is to . . .
o My primary objective is to, of course, make money. I have come to accept this to be a time consuming process and that it may take a few years to fully accomplish my monetary goals, which is to be able to trade in a fashion so as to create a suitable income for my wife and I while having enough trading capital left over at years end to allow for a (theoretical) increase in income each following year.
· These objectives are important to me because . . .
o These objectives are important to me because, if achieved, I believe they will allow me to lead a happier life in which I am able to achieve far greater success and self fulfilment than what I believe is possible with the path I am currently following.
· I believe I can achieve my objectives because . . . <o></o>
o I believe I can achieve my objectives because I am already familiar with money management and pushing small edges (thanks to online card playing which has been profitable for me). I also believe my prior experiences in system development (and participation in already setup systems) will help in this process. (Thanks to Jerry White for showing me my first fully functional exceptional system and to God for pointing my life in a direction where I was able to work with GC/MS system and macro development).<o></o>
1.2 What is my style?
<o></o>
· I am a mechanical trader and my style is very . .
o Precise. I want to spend my time creating, writing, and testing computerized trading methodologies; and then run those methodologies within the specific markets and time frames in which they were designed and tested for. I understand this approach to trading may not produce as much profit as one in which the actual trader is involved with all trades at all times, and that some trading methodologies may be difficult or impossible to program. I would like these methodologies to trade in the short term because I like to constantly monitor my results and I believe shorter time frames will lead to more timely review of my progress and allow me to make more timely adjustments if/when necessary.
· I understand that I cannot predict the future …
o and I accept that I cannot control the markets. I accept that I must take what the markets are willing to give me, not what I want to take from the markets.
· However I can control myself, which I will do by . . . <o></o>
o Reviewing my trading template to remind myself of my goals and objectives, and by removing myself from the markets at times when I am not of sound mind, rest or emotion to handle trading. <o></o>
<o></o>
1.3 What are my strengths and weaknesses?
<o></o>
· My strengths are . . .
o Ability to stick to a well done regimented play.<o></o>
§ This strength will help me remove emotion from my trading and allow me to stay consistent when I experience exceptional profit or loss swings.
o Mathematical concepts in statistics and probabilities come easy for me.<o></o>
§ I can utilize this skill by quickly checking to see if the actual results I get from trading are within an expectable statistical range of what I expect, and if not in range, possibly be alerted to a problem earlier than I might otherwise be.
o Pattern recognition comes easy for me.<o></o>
§ This skill can be utilized in looking at data/charts to see if there is any similarities of recurring events which could be profitable. This skill will also be helpful in seeing if my computerized processes are picking patterns the way I would like them to.
o Playing cards for money has given me money management skills as well as allowed me to learn how to properly handle emotions when experiencing spiked profits or downdrawls.<o></o>
§ I can utilize this as a transfer skill for managing money in trading properly, especially in risk management. This skill can also be utilized as a foundation on how to separate emotions from winning or losing.
o I have the most loving, caring, wonderful wife any reasonable man could ask for, who adores me regardless of whether I’m winning or losing.<o></o>
§ Less a skill and more an asset. This person is best utilized as a support and emotional safety net when everything else is going wrong.
· My weaknesses are . . <o></o>
o I’m lazy.<o></o>
§ I can best minimize this weakness by having written goals, and scheduled times when I will work on my trading.<o></o>
o My mind wonders and I lose interest in many subjects quickly.<o></o>
§ I can best minimize this weakness by having written timely goals. If I am having difficulty focusing on one aspect of trading I can choose to focus on a completely different aspect of trading as a way to combat this weakness.<o></o>
o I need to learn a new programming language to write computer processes for my trading.<o></o>
§ I can minimize this weakness by avoiding script writing in any language other than the one which is used to help in my trades.<o></o>
<o></o>
1.4 Do I tend to get compulsive? (i.e., get caught up in the excitement of trading), have personal conflicts? (i.e., have a history of conflicts with my family, at my job, or during past trading experience), or have any emotional issues that constantly crop up, such as fear or anger?
<o></o>
· I can be compulsive, but always in a controlled way. I might get on a project and not stop for hours because I’m in a ‘groove’. While doing this I am always following my protocol for what I am doing so I do not see this as being a problem. I currently have no personal conflicts that would effect my trading and I am very good at putting emotions at bay when working on a project which can be adversely affected by emotion. I do not harbour any fear or anger.
1.5 Am I in the right frame of mind?
<o></o>
· I will only trade on days when . . .
o I am well rested and in a relaxed focused mental state.
· I will not trade on days when . . .
o Plagued by emotional hardship or loss or have trouble maintaining my focus. I will stop involving myself in trading activities if I find I am making consecutive errors.
<o></o>
1.6 How much time during the day do I have to devote to trading?
<o></o>
· I have about two hours a day Monday to Thursday. All day on Friday, Saturday and Sunday (dependent upon my social schedule, vacation and family time).<o></o>
<o></o>
1.7 When I'm trading, how many distractions can I expect to have? How will I deal with those distractions?
<o></o>
· Most days I will not have many distractions. When I am distracted I will have to stop trading until such time as I have delt with the distraction of found a way to put off the distraction until I am done with my trading work.<o></o>
<o></o>
1.8 How much time do I expect to devote to developing my trading system? And to doing my personal psychological work, and to working on my business plan for trading?
<o></o>
· I hope to devote one hour a day Monday to Thursday, three hours on Fridays and 5+ hours on Saturday and Sunday (when I am in town). My overall goal is to put forth no less than 10 hours a week into trading related activities.
1.9 What are my computer skills? What skills do I need before I begin this trading venture?
<o></o>
My computer skills are medium. Using most programs comes intuitively to me but I do have to work at learning the minutia of most programs I use on a regular basis. I need to build up skills in the programming language for the trading platform I will be using.<o></o>
1.10 What do I know about statistics?
<o></o>
· Statistics are not difficult for me. Statistical math is almost intuitive for me, however I do tend to need to review mathematical equations before putting them into use.<o></o>
1.11 How would I rate my market knowledge?
<o></o>
· Poor. I am starting from scratch. I have very little market experience other than a few trades. I have suspended all my trading activities until I learn how to trade correctly and start to develop positive habits.
I have started to work on my trading plan template and would like to open each step of it up to comment. I am not sure if it is proper to do this here, but if it isn't then please let me know and I will edit or delete this message.
My template is based on the template posted right here in the beginners forum stikied under the title "Trading Plan Template" I am using v1.2 posted by Isotonic.
Any comments or constructive criticism is welcomed.
thanks,
Matt
1. Self Assessment
<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o
></o>1.1 Why do I want to be a trader?
<o
></o>· I want to be a trader because . .
o I want to become a trader because it seems like a natural progression for me and I love the idea of being able to formulate a system of my own design which I implement for the purpose of a profit. I like the idea of being able t omake my own decisions and run my trading my own way.
· My primary objective in wanting to be a trader is to . . .
o My primary objective is to, of course, make money. I have come to accept this to be a time consuming process and that it may take a few years to fully accomplish my monetary goals, which is to be able to trade in a fashion so as to create a suitable income for my wife and I while having enough trading capital left over at years end to allow for a (theoretical) increase in income each following year.
· These objectives are important to me because . . .
o These objectives are important to me because, if achieved, I believe they will allow me to lead a happier life in which I am able to achieve far greater success and self fulfilment than what I believe is possible with the path I am currently following.
· I believe I can achieve my objectives because . . . <o
></o>o I believe I can achieve my objectives because I am already familiar with money management and pushing small edges (thanks to online card playing which has been profitable for me). I also believe my prior experiences in system development (and participation in already setup systems) will help in this process. (Thanks to Jerry White for showing me my first fully functional exceptional system and to God for pointing my life in a direction where I was able to work with GC/MS system and macro development).<o
></o>1.2 What is my style?
<o
></o>· I am a mechanical trader and my style is very . .
o Precise. I want to spend my time creating, writing, and testing computerized trading methodologies; and then run those methodologies within the specific markets and time frames in which they were designed and tested for. I understand this approach to trading may not produce as much profit as one in which the actual trader is involved with all trades at all times, and that some trading methodologies may be difficult or impossible to program. I would like these methodologies to trade in the short term because I like to constantly monitor my results and I believe shorter time frames will lead to more timely review of my progress and allow me to make more timely adjustments if/when necessary.
· I understand that I cannot predict the future …
o and I accept that I cannot control the markets. I accept that I must take what the markets are willing to give me, not what I want to take from the markets.
· However I can control myself, which I will do by . . . <o
></o>o Reviewing my trading template to remind myself of my goals and objectives, and by removing myself from the markets at times when I am not of sound mind, rest or emotion to handle trading. <o
></o><o
></o>1.3 What are my strengths and weaknesses?
<o
></o>· My strengths are . . .
o Ability to stick to a well done regimented play.<o
></o>§ This strength will help me remove emotion from my trading and allow me to stay consistent when I experience exceptional profit or loss swings.
o Mathematical concepts in statistics and probabilities come easy for me.<o
></o>§ I can utilize this skill by quickly checking to see if the actual results I get from trading are within an expectable statistical range of what I expect, and if not in range, possibly be alerted to a problem earlier than I might otherwise be.
o Pattern recognition comes easy for me.<o
></o>§ This skill can be utilized in looking at data/charts to see if there is any similarities of recurring events which could be profitable. This skill will also be helpful in seeing if my computerized processes are picking patterns the way I would like them to.
o Playing cards for money has given me money management skills as well as allowed me to learn how to properly handle emotions when experiencing spiked profits or downdrawls.<o
></o>§ I can utilize this as a transfer skill for managing money in trading properly, especially in risk management. This skill can also be utilized as a foundation on how to separate emotions from winning or losing.
o I have the most loving, caring, wonderful wife any reasonable man could ask for, who adores me regardless of whether I’m winning or losing.<o
></o>§ Less a skill and more an asset. This person is best utilized as a support and emotional safety net when everything else is going wrong.
· My weaknesses are . . <o
></o>o I’m lazy.<o
></o>§ I can best minimize this weakness by having written goals, and scheduled times when I will work on my trading.<o
></o>o My mind wonders and I lose interest in many subjects quickly.<o
></o>§ I can best minimize this weakness by having written timely goals. If I am having difficulty focusing on one aspect of trading I can choose to focus on a completely different aspect of trading as a way to combat this weakness.<o
></o>o I need to learn a new programming language to write computer processes for my trading.<o
></o>§ I can minimize this weakness by avoiding script writing in any language other than the one which is used to help in my trades.<o
></o><o
></o>1.4 Do I tend to get compulsive? (i.e., get caught up in the excitement of trading), have personal conflicts? (i.e., have a history of conflicts with my family, at my job, or during past trading experience), or have any emotional issues that constantly crop up, such as fear or anger?
<o
></o>· I can be compulsive, but always in a controlled way. I might get on a project and not stop for hours because I’m in a ‘groove’. While doing this I am always following my protocol for what I am doing so I do not see this as being a problem. I currently have no personal conflicts that would effect my trading and I am very good at putting emotions at bay when working on a project which can be adversely affected by emotion. I do not harbour any fear or anger.
1.5 Am I in the right frame of mind?
<o
></o>· I will only trade on days when . . .
o I am well rested and in a relaxed focused mental state.
· I will not trade on days when . . .
o Plagued by emotional hardship or loss or have trouble maintaining my focus. I will stop involving myself in trading activities if I find I am making consecutive errors.
<o
></o>1.6 How much time during the day do I have to devote to trading?
<o
></o>· I have about two hours a day Monday to Thursday. All day on Friday, Saturday and Sunday (dependent upon my social schedule, vacation and family time).<o
></o><o
></o>1.7 When I'm trading, how many distractions can I expect to have? How will I deal with those distractions?
<o
></o>· Most days I will not have many distractions. When I am distracted I will have to stop trading until such time as I have delt with the distraction of found a way to put off the distraction until I am done with my trading work.<o
></o><o
></o>1.8 How much time do I expect to devote to developing my trading system? And to doing my personal psychological work, and to working on my business plan for trading?
<o
></o>· I hope to devote one hour a day Monday to Thursday, three hours on Fridays and 5+ hours on Saturday and Sunday (when I am in town). My overall goal is to put forth no less than 10 hours a week into trading related activities.
1.9 What are my computer skills? What skills do I need before I begin this trading venture?
<o
></o>My computer skills are medium. Using most programs comes intuitively to me but I do have to work at learning the minutia of most programs I use on a regular basis. I need to build up skills in the programming language for the trading platform I will be using.<o
></o>1.10 What do I know about statistics?
<o
></o>· Statistics are not difficult for me. Statistical math is almost intuitive for me, however I do tend to need to review mathematical equations before putting them into use.<o
></o>1.11 How would I rate my market knowledge?
<o
></o>· Poor. I am starting from scratch. I have very little market experience other than a few trades. I have suspended all my trading activities until I learn how to trade correctly and start to develop positive habits.
