How to Write The Best Stocks Plan

The following is a trade plan example template of a best stocks plan:

JUSTIFICATION

1. Stock Trading IS A BUSINESS, SUCCESSFUL BUSINESSES ALWAYS HAVE PLANS

• Businesses that are successful always begin with a plan.
• Successful business planning will guide you to success, think of the stocks plan as a map: it's a constant reminder of how you will consistently pull profits from the stocks market.
• Difference between a successful stocks trader and a losing one is the stocks plan.

2. TO KEEP ME IN THE RIGHT DIRECTION when Trading Stocks

Consistency is important in your trading routine to measure how successful you're.

Keep you on target, read your stocks plan every day and stick to it.

When it comes to your stocks trade plan you should think of it as a map which shows you this is what you follow, it should have clear stocks rules which specify when you open or close a stocks trade transaction.

Your stock trading plan should cover all aspects of stocks, you should read your stocks plan every day until it is on your fingertips so that when you are trading on the fast moving market of stocks you'll always know what to do in every situation.

Your stocks plan can be as simple or as complicated as you like, but the most important thing is that you have one. By having a stocks plan you have an advantage over the stocks market, you'll have better odds of making a profit than those stocks traders who don't have a stocks trade plan.

This stocks plan tutorial topic provides stocks traders with an example stocks plan template that you can use for creating your own stocks trade plan. By now you have already written down the justification part of your stocks plan template, If not get a pen and paper and write the justification part. Next we shall look at how to write the stocks trading system.

Stocks plan is one of the secrets which can help you to improve your profits. A good stocks training guide like this one should show you how to create a stocks plan using a stocks plan template which you can use as an example to develop your own.

One of the most common question is, Is Stocks profitable? one of the methods to make it profitable is to have a good stocks trade plan.

IF YOU HAVE A GOOD Stock Trading PLAN AND ARE DISCIPLINED ENOUGH TO STICK TO ITS Rules When Stock Trading, YOU WILL BE SUCCESSFUL.

GOALS OF THE Stocks TRADING SYSTEM

1. Ability to IDENTIFY A Stocks Trading TREND AS EARLY AS POSSIBLE .
2. Ability to AVOID WHIPSAWS .

The stocks system should find a compromise between the two Goals,

Find a way to identify a stocks trend as early as possible but also find ways to help you distinguish the fake trading signals from the real ones.

FUNCTIONS OF EACH Stocks TECHNICAL INDICATOR

MA - Identify a new stocks trend as early as possible.

MACD - Identify a stocks trend as early as possible.

Determine strength of a continuing stock trend.

RSI - Swing failure to confirm the begin of a new stock trend.

Extra confirmation stocks indicators and tools to help determine the strength of our stock trend.

Parabolic SAR - Help to ensure that we are not caught up on the wrong side of the stock trend.

Stocks Trend Lines - Signals a reversal when the trend line is broken

Stocks Price Action Signals - confirm the weakening of a stock trend.

Bollinger Bands - for stocks price action study

To learn more about each stocks indicator and how these indicators can be used to generate stocks signal setups you can go to Stocks Technical Indicators Section

TRADING CHART TIME FRAMES

• Main stocks chart time-frame is the 1H.
• Stocks Signals are generated on the 15 minute chart timeframe.

15 Min Stocks Charts

• Stocks Trend Lines (Support and Resistance)
• 5 & 7 LWMA
• RSI (14)
• Bollinger Bands (20, 2)

Stocks System RULES

LONG ENTRY

Entry

15 Min Charts

1. Both MAs are moving UP
2. MACD moving UP
3. RSI >-> 50
4. Parabolic SAR is below the stocks price ( Support )

When a stocks signal is generated on 1 H Chart, use the 15 min chart time-frame to open & close positions.

LONG EXIT

1. RSI gives opposite trading signal
2. Stocks Price breaks Support Stocks Trend Line
3. Parabolic SAR is hit (Trailing Stop)

RULES

SHORT ENTRY

Entry

15 Min Charts

1. Both MAs are moving DOWN
2. MACD moving DOWN
3. RSI <-< 50
4. Parabolic SAR is above the stocks price ( Support )

When signal is generated on 1 H Chart, use the 15 min chart time-frame to open & close positions.

SHORT EXIT

1. RSI gives opposite trading signal
2. Stocks Price action breaks Support Stocks Trend Line
3. Parabolic SAR is hit (Trailing Stop)

ROUTINE

1. stock trading signals are generated using 1H stocks chart timeframe and executed using the 15 minute chart timeframe.
2. stock signal to be executed immediately rules are met.
3. Entry alert trading signals should be executed during daytime.

TIME OF DAY TO WATCH MARKET - MARKET HOURS

Watch market during daytime when most companies & online stocks brokers are open for trade transactions. Use this to create a suitable stocks schedule.

Example Trading Plan Template

Stocks Tips - You can use the MT4 Stocks Software to save this stocks plan example as a stocks template on the MT4 platform - that way you don't have to lay it afresh every time you open a new stocks chart. If you want to learn how to save a stocks template on the MT4 platform, read: MT4 Stocks Platform Tutorials.

MONEY MANAGEMENT RULES

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

• Set TP target 40-60 Stocks Pips
• Never transact beyond 3 % of stocks account equity
• Never risk more than 2% on a single trade

MINDSET/PSYCHOLOGY

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

My job is not to be the stocks system!

It is not to decide which signal looks promising.

That is the job of my stocks system - which has a set of trading rules which tells me this is what I follow. Do not get caught up in stocks price action & make trading rules as you go along.

MY JOB DESCRIPTION IS

To sit patiently & wait for my stocks strategy to indicate that it is time to enter or it is time to exit. And then with great focus I execute the stocks trade plan as outlined.

Taking trades not indicated by the stocks system, second guessing the stocks system and not taking trading signals given, hesitating and getting in late, anticipating & getting in early are all common place and boil down to lack of faith in the plan & not having a burning focus on accurate execution.

GOAL: To have 100% undivided focus on mastering my ability to execute my stock trading rules accurately.

More you develop the ability to step back from stocks price movement & watch stocks market dispassionately, waiting for a signal, the easier it will be to witness the fluctuations of your emotions without getting sucked into them & allowing them to throw you off your game.

WEAKNESS

1. I am greedy.
2. I over-trade
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 Stocks psychology to help you overcome them.

NB: by writing down your weaknesses you will start recognizing them as you make progress in stock trading, once you do this you will begin to avoid this mistakes and your trading results will improve.

GOALS

• To focus on exit just as much as I do on entry trading signals.
• Always protect my stocks account using stop loss, stocks money management techniques, follow with the stocks trend direction & always following the rules of my stocks trading strategy.
• Never second guess or go against my stocks strategy. To always keep up my discipline.
• Follow all the rules of my stock trading strategy & never break them.
• Trade fewer times & execute all my stocks signals correctly. Trade what I see, what the stocks system + stocks charts are telling me.
• Sit patiently & wait for stocks signals from my stocks trading strategy.
• Achieve consistent profitable results before opening a live stocks trading account.

FOLLOW THIS SYSTEM

This is the most important part of creating the stocks system.

Always follow the stocks rules

Stick with the stocks rules

Be disciplined & patient enough

Stocks Trading JOURNAL

Log all my stocks trade transactions in a stocks journal so as to track my training progress and improve my stocks execution methods.

The stocks strategy uses momentum to determine the stocks trend of any stocks.

Even if you are new to stock trading market and you do not know how a stocks system looks like, this stocks system example illustrates to you how a stocks system stocks strategy should look like, the Stocks tutorials explained in other sections of this learn stocks training website will also explain further different aspects which you need to learn.

Hence, the objective is to help you create your own complete stocks strategy that's if you are looking for one, by showing you one that is already complete. In fact you can just use this stocks plan example as it is, or make a few adjustments so that it fits your stocks style.

The objective is to help you improve your stocks results by using a stocks plan that is written, and another advantage is that this stocks trade plan will offer you a chance to improve your knowledge and it will help you trade better, make pips and keep them so that you do not keep giving them back to the stocks market.

Read this stocks plan training tutorial about developing a stocks trade plan of your own, along with learn stocks courses and stocks strategies listed at the tops of this learn stocks tutorial.

The Most Beneficial part of using this stocks plan template is the "Stock Money Management Part" you will learn how to trade stock trading and minimize risk, which is the most important thing when it comes to the stocks market trading.