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Day Trading Chat Room - The Trading Authority - Online Futures Trading E-mini Courses


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Sample Trading Plan - Everything but the system

 
TRADING PLAN

Trading Philosophy / Trading Psychology:
• I believe that Financial Markets are 100% psychology driven.
• Price patterns are a reflection of the collective psychology of a large number of traders.
• Trading psychology also a major factor in my own trading. It is identified as my trading state. Fear and Greed are powerful enemies to profitable trading and I can overcome this by training my subconscious mind to be focused on following a defined trading plan versus focusing on wins and losses.
• I am a disciplined trader committed to trading only for profit strictly adhering too my trading rules, plan and standard operating procedures.
• My style of trading is aggressive with my preference to trade directional, and pattern set ups. I will trade full time as a day trader and also seek other trading opportunities especially dealing with Options.
• I will not have a bias as to where the market may or may not head, I will react to the price, patterns and my tools as they present themselves applying my trading rules.
• I trade what I see… Not what I think!
• I understand that I cannot control the market, I can control only myself.
• My trading state and mindset is the key to the success of trading. I must be rested, fit, healthy and mentally alert. Accepting the stress of trading by keeping focused, calm, disciplined and not distracted is essential for being a professional trader.
• Losses are acceptable, not desirable but I can minimize them with compliance to the rules, especially avoiding impulse trades and never being in a trade without a plan or a stop.
• Trading is a business and I am here for the profit.






Golden Trading Rules:
• Check for Stops and targets resting in the Market then update or remove them.
• Look left for previous structure.
• Always Set a Stop Loss. Always!
• Maintain Discipline.
• Avoid impulse trading. Trade with a plan and stand by the rules.
• Identify, Predict, Decide and Execute (IPDE).
• Do not enter a market within 15 minutes after a news event.
• Get S.E.T. (Stop, Entry, Targets) before every trade. (Know where and how to Exit…)
• If I lose my ISP then call my Broker immediately and go flat, then work on the technical challenges to get back online.
• Keep it simple.

Money Management, Risk Reward and Financial Goals:
• I will trade 4 contracts as a unit maximum for the S&P e-mini.
• I will trade 3 contracts as a unit maximum in the Russell e-mini.
• For every $5K that I add to my account I can add a contract to a unit. If I reduce my account by $2K then I will reduce the contract size.
• Commissions, fees, charting services, continuing education and other business related costs are considered essential to trading.
• Risk to Reward is preferred a 2 to 1 ratio, but waiting for the set up and trading the rules is paramount and given the opportunity this standard is a guideline.
• My goal is to successfully net 9 combined points per week in the market.
• My desire is to train for the FOREX so that I can diversify looking for the best opportunities as I see them.


Daily Routine
• I will only trade on days when I am well rested, relaxed and not mentally distracted by matters that will divert my focus.
• I will spend at least 15 minutes relaxing to music or a form of meditation after a good nights rest before trading.
• Conduct a Pre-Market Analysis myself, perform a top-down review of the major markets and develop a plan of the day. The trading day is from 9:30 a.m. (EST) to 4:15 p.m. divided into a morning session, lunch and afternoon session.
• I do not trade for the first hour on Mondays.
• I do not enter any new trades the last half an hour of the market hours (1545 – 1615 EST).
• After I have met my goal or the market is closed I will log my journal and then spend quality time with my family.
• At some point before the end of the day I will revisit the S&P trading day and back test my plan and system.


Pre-Market Analysis
Understanding that 70% of the volatility occurs during the first 2 ½ hours of trading, this step is very important. The goal here is to recognize probable entry or exit points.
• Check for – and note important reports, events, and or news releases. Include in the plan of the day candidates and times for probable heightened price volatility.
• Look at Daily chart with ATR, 60 min and 13 min charts. Was there expansion or contraction?
• Annotate the previous days high and close with a black line.
• Determine Market Bias. Where is the price relative to the Daily Pivot (Above the Daily Pivot is bullish bias, below the daily pivot is bearish bias)
• Note overnight support / resistance levels, double tops/bottoms and trends.
• Locate and note significant Swing Points.
• Where are the dynamics / stops?
• Calculate the previous days Average True Range (ATR).
• Review the cash, $OEX Globex and the DAX markets.
• Note the %ATR reached up until this point.
• Review the charts of the top 10 stocks in the S&P.
• Top down analysis – is underlying (Weekly) (Daily) trend up, down or sideways? Is current trend with the underlying trend, or against the underlying trend?
• Create a Plan of the Day (POD) and Trade what I see with the POD outlining probable entries and exits.


Set ups and the Rules of Engagement (ROE):
• I plan to train myself with Neuro-Associative Conditioning (NAC) to be proficient in 3-5 set ups. As I train through repetition and develop an absolute belief in the patterns and occurrences in the two markets then I will commit ROE’s for each scenario and include them herein.
• At all times I will be aware of what direction the trading markets are in and when I see one of my recognized set ups, I will ask myself these three questions in order; RSI OB / OS then
Where is Price relative to?
Pivots
Previous Structure
The days ATR using Globex numbers





Trading Education




At The Trading Authority, Our philosophy is to provide a one-stop trading education solution by addressing all of the factors critical to online trading success. These include a profitable trading system and tools as well as trading psychology and money management strategies.

 

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