How to Write a Commodities Trading Business Trading Plan Example

The commodity trading plan is logical approach to commodity trading which controls all aspects of the trading.

If you trade commodity , you need a commodity trading plan template if you want to become a consistent winner and to be able to make commodity trading decisions fast and accurately.

Each commodity trading plan template will have its own commodity trading rules that have been set sets describing entry and exit trading signals. The commodity trading rules set for each commodity trading system are converted into simple to follow instructions or a commodity trading checklist template that the trader can easily follow.

This commodity trading checklist template will direct the whole trading process of trading - controlling the timing of the trade entries & exits ( commodity trading system) , the value of the opened commodities trades in relation to the commodity trading account balance ( commodity trading money management system) and the emotional state of the trader (emotion management system). The resultant trade details should be recorded in the trading journal commodity trading log and later studied for the ideas on how to improve each of the commodity trading systems.

Trading is often compared to business. If commodity trading is business then the commodity trading plan is your business plan which should be prepared before you start trading with the real money. Better you prepare this commodity trading plan - commodity trading checklist template, the more success you can expect to achieve in real commodities trading.

Commodity Trading Plan Template

To write a good commodity trading plan, you will need a good commodity trading plan template that as a trader you can use to create your own commodity trading plan. But before you download the commodity trading plan, here is an explanation of the various commodity trading plan commodity trading checklist sections that your commodity trading plan requires to have.

JUSTIFICATION

This part of your commodity trading plan will write why you require a commodity trading plan, one of the reason is that commodity trading is a business.

Commodity TRADING SYSTEM

This is the commodity trading plan part where you include your trading system. In this section you will write the commodity indicators to trade with, then you will write the commodity trading system rules that you will generate the commodity signals with.

For more tutorials about commodity trading systems

Commodity Trade Systems

How to design Commodity Trading Systems

How to Write Commodity Trading System Rules

Generating Trading Signals

Tips For Commodity Trading Systems

Commodity Trade Journals.

TIMEFRAME

This is where you specify which is the main commodities trading chart time-frame that you will be trading with.

• Types of Commodity Traders - Commodities Day Trading & Swing Trading

TRADE ROUTINE

This is the part as a trader that you have to specify the time when you will be trading the commodities trading market and when you generate commodity signals and how these commodity signals should be generated. For examples:

1. Signals are generated using 1H commodities trading chart time-frame.
2. Signals to be executed immediately rules are met.
3. Entry trading signals should be executed during daytime.

TIME OF DAY TO WATCH MARKET

Watch market during daytime & trade only during the best commodity hours

MONEY MANAGEMENT

This is the part where as a trader you will specify the commodity trading money management rules that you will follow, for example:

• Day trading -Low risk High return method
• Trade when I have a high risk:reward ratio 3:1 or more
• Stop loss = Parabolic SAR

• Set TP target 100 Commodity Trading Pips
• Never trade beyond 3 % of commodity trading account balance
• Never risk more than 2% on a single commodities trade

To know more about commodity trading money management

• Commodity Trading Money Management
• Commodities Money Management Strategies Methods

MINDSET/PSYCHOLOGY

This is the part you specify about your commodity psychology rules

• Trade without Emotions (greed, fear, anticipation, impulse, bias, overexcitement)
• I trade what my eyes see not what I feel.
• I will be patient.

My job is not to be the commodity trading system!

It is not to decide which trades looks promising.

Commodity Psychology Rules and Tutorials:

• Commodity Trading Psychology
• Commodity Trading Psychology & Emotions
• Commodity Trading Psychology Principles
• Commodity Trading Psychology Rules

WEAKNESS

By writing down your weaknesses you will begin recognizing them as you trade, once you do this you'll start to avoid this mistakes & your trading will improve.

For Example

1. I am greedy.
2. I overtrade
3. Make a list of all your weaknesses that are interfering with your trading. This is first step to help you overcome these weaknesses. Use psychology to help you overcome them.

GOALS

Write the goals you want to achieve with your commodity trading plan

·To focus on exit just as much as I do on entry.

·Always protect my account using stop loss, commodity trading money management techniques, trading with the commodity trend and always following the rules of my commodity trading system & trading plan.

·Never second guess or go against my commodities trading system.

FOLLOW THIS SYSTEM

This is the most important part of creating the system.

·Always follow the rules

·Stick with the rules

·Be disciplined & patient enough

JOURNAL

Log all my trades in a journal so as to track my progress. Write your Commodity Trades on a commodity trading journal to track progress of your trading.

How to Write a Commodity Trading Journal