Developing Your Own Trading Plan by Solomon Chuama
Winning The Battle
Here’s an example of how you can execute your own trading system based on current market analysis.
There’s a saying that if you fail to plan, then you have already planned to fail. What, then, is a trading plan? A trading plan is an embodiment of your trading goals, risk management rules, and your trading system. Sadly, 90% of new traders don’t survive the markets because of haphazard trading. A trading plan is a well-thought-out approach to executing a trading system of your own based on the market analysis in order to limit trading mistakes or losses. Trading plans differ from one trader to another because of different styles of trading. But it’s not enough to develop a trading plan; you also have to be able to stick to it.
In this article, I will provide examples of my goals and of my trading system, on which a trading plan can be based. The goals I set for myself are the motivating factor in my trading. Besides goal-setting, you must have some interest in the business you run. Here were my goals when I started trading: