Professional Documents
Culture Documents
ALEX KIRUI
FOREX6GOD
THIS PIECE OF TEMPLATE IS DEDICATED TO HANS SCHNEIDER AND RYAN SANTOS FOR
HAVING THE WORST TRADING PLANS IN THE HISTORY OF TRADING PLANS
With a trading plan, you will have the ability to monitor your performance, you
can evaluate your progress, your daily goals, etc., in a way that is comprehensive,
following your plan religiously will make you trade without emotions and more
importantly with minimal stress or no stress at all.
Those traders without a trading plan will never trade without emotions and
stress, their trading mainly relies upon, gut feeling, tips and signals, this kind of
trading is nail biting, emotional roller-coaster full of stress and as a result as ted
put it financial suicide
As Waqar EMAS Ajmal states that a trading plan is not a trading strategy, as it would be soo simple.
However, a good plan, that is adhered tp strictly will help minimise losses and enable you to stay in the
game much longer than those traders who don’t have a trading plan.
Anyone who is embarking on trading, a trading plan is a roadmap for your journey which to most traders
that journey is to attain consistency. To embark on your trading career without a clear idea of where you
are going and how you are going to get there will certainly result in financial loss and lots of stress.
Either your plan is not working, or you are not adhering to it.
If you are losing money without a trading plan, it’s impossible to point out what you are doing wrong,
because you have no way of evaluating things.
A trading plan should take much of your trading decisions, when you are in a losing trade and equally
when you are in a winning trade, that way at the heat of the moment you do not make an emotional
decision, you just follow what your trading plan tells you
Decide on what it is you want to achieve, then ask yourself why and how trading is going to provide it,
Check your background and examine it, Give for example, a trader named Ted Safranko, He used to
work in a finance company, this is a highly disciplined environment with strict procedures, so this might
give him strength because he can organize his trading like his previous job. However he is a poker player
which is addictive, and may lead him to be reckless, (weakness)
So with your strengths and weakness highlighted in your plan, overtime it will be revealed in it, for
example
My primary strength is . . . (allowing my profits to run and closing trades in accordance with my exit
strategy. This contributes to ‘my edge’ and helps me towards my goal of being consistently profitable in
the markets). My secondary strength is . . . My primary weakness is . . . (wanting to recoup a loss quickly
which, almost inevitably, results in increased losses). The following aspect of my trading plan will help to
control this weakness and prevent losses from spiraling out of control . . . (I have a pre-defined daily stop.
If it is hit, I stop trading for the day). My secondary weakness is . .
DAILY QUESTIONS
I’m I okay to trade today?
Your mindset is the key to your success, have you had enough sleep? Are you relaxed? Are you tired or
distracted by other things?
As a general rule of thumb, professional traders tend to restrict their focus to a limited number of
currency pairs maximum two!. By contrast, amateur traders tend to trade gold one day, currency pairs
the next and exotic sounding commodities like pork bellies the day after that, etc.!
2) At best, it allows profits to run which enables you to take a sizeable chunk out of the expected move
Exit Strategy
Exit strategies are harder to get right than entry strategies. Unfortunately, they are much more
important because, self-evidently, they control the profit and loss. A dynamic, market controlled exit
enables you to take some money off the table offered by the eventual losers and let the big winners run
to realize a greater proportion of the increased gains on offer. These additional profits could transform
an overall trading strategy from one that barely breaks even into one that is very profitable indeed.
Have You Recorded Today’s Trades?..... After the market closes, I will . …….
Did You Execute Your Trades According to Your Plan?........ In addition to recording all my trades, I check
to . . .
Have You Completed Your Trading Journal?...... I regularly update my trading journal with . …..
Discipline
Having a comprehensive trading plan with detailed entry and exit criteria and excellent risk and money
management procedures all count for nothing if you lack the necessary discipline to implement them.
Ensure that you stick rigidly to the commitments that you have made to YOURSELF in adhering to your
plan; this is relatively easy during periods of profit. However, the real test will be your ability to stick to it
when your trading is not going so well.
What are Your Promises to Yourself? These are promises that are designed to enforce self-discipline.
What sanctions will you impose upon yourself if you break one of your trading rules? Worse still, what
about if you break two in a row?
For example your plan should be like
If I break one of the rules detailed in my trading plan I will . . . (stop trading for a full day and focus on the
reasons why there was a breach of discipline).
#5. NEVER CHASE YOUR LOSSES. EVER! Unless you are rakeel
Alpesh B. Patel states, “While a plan cannot predict the future, it can lay down how you react to the
possible outcomes. This is why a plan is essential. It is a list of strategic responses to events beyond your
control. You control the only thing you can control – yourself”.