In part 1 of this article I described the reluctance of beginning e-mini traders to formulate and write a comprehensive e-mini trading plan. Like many things in trading, I suppose that activities besides actual e-mini trading are perceived as spurious and unnecessary. In part 2 of this article I hope to convince you that writing a comprehensive trading plan (and following it) is one of the essential activities necessary for growth in your career.
Styles of trading are unique from individual to individual. Like many things in life, no two individuals are going to approach it in exactly the same manner. We all tend to see and interpret charts in different ways, and how you abstract information from a chart will influence your evaluation of potentially profitable trades.
It is important to arrive at similar conclusions about the potential success of a trade. As a mentor, I have a specific guidelines and criteria that define a position that is likely to succeed. How the beginning e-mini trader’s perception of chart variables leads to my specific guidelines and criteria is how I define a traders “style.” If I have learned anything in a lifetime of trading it is this: no 2 individuals see and interpret chart variables in exactly the same way. I think it is important to note that differences in styles of perception do not preclude 2 traders from reaching the same conclusion. The tool that I use to quantify a beginning traders style with the goal of arriving at the proper evaluation of trades is a written trading plan.
What sort of things should be a good trading plan include?
· First and foremost, I believe it is important for an individual to define, in specific terms, why they are trading. 대여계좌
· A beginning trader should have quantifiable goals; short-term, intermediate term, and long-term. These goals should have specific objectives that are realistic and attainable.
· What markets do you plan to trade? Why?
· What entry criterions are necessary to enter a trade? I prefer of these criterion to be specific and quantifiable.
· How will you manage risk? Some specific methodology for determining profit targets and stop loss levels should be discussed. Also, position sizing needs to be quantified and the methodology for the number of contracts you will trade should be specific. How will you exit trades? When? How about risk/reward ratios in your trading plan?
· Money management is one of the most important elements of e-mini trading. What is your money management plan and how did you determine the components of your money management plan?
· What is your pre-market routine? How will you prepare for the day?
· I require all traders to keep a journal. How will that trading journal be structured?
· What tools will you utilize in your trading? This section should include items like: trading platform, chart presentation style, indicators and oscillators, third party software, computer hardware, office location, and office environment are just a few of the many control variables that fall under the “types of tools” that I utilized in trading.