Three Elements For A Great Trading Plan

What’s your plan for trading in 2019?

I’ve never met a trader who wanted to repeat what they did the previous year — whether they were tremendously profitable or had a terrible year.

Traders want to grow — to move from one stage of performance to the next.

Improvement in trading has three major components:

1. Mindset — Without humble optimism and the right perspective about why you trade and what the opportunities are… you will be chasing ideas and riding the emotional roller coaster of thrill and terror.

2. Subtracting — You can’t make room for good trades and good strategies until you eliminate the distractions and poor processes first.

3. Adding — Once you have the right mindset and have made room for good trading, you can begin to evaluate strategies and individual opportunities that are worth your focused attention.

Don’t skip any of these phases — and don’t get them out of order either. You can’t add good strategies if you are being distracted by random ideas or bad positions that you shouldn’t be in. You can’t recognize what to subtract until you have set your mind on what you are actually trying to accomplish.

Andrew Falde