1 / 9

Trading IS A Business …fail to plan…plan to fail

Trading IS A Business …fail to plan…plan to fail. Shane Daly shaned@netpicks.com. Fail To Plan. Not a sexy topic…is the key to success Jumping right in advice, system….Proof (backtest, forward)? Trading by gut feel, “guru”, follow the crowd

jontae
Download Presentation

Trading IS A Business …fail to plan…plan to fail

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Trading IS A Business…fail to plan…plan to fail Shane Dalyshaned@netpicks.com

  2. Fail To Plan • Not a sexy topic…is the key to success • Jumping right in advice, system….Proof (backtest, forward)? • Trading by gut feel, “guru”, follow the crowd • Entry, Exit, Risk, Risk %, total exposure, markets (pairs) • Swing? Day? Both? • How do you know what to fix? Monitor performance?

  3. Where To Start? • Understand the basics of your system (comfortable) • Choose markets, timeframes, times to trade • Decide on rules for exit, entry, adjusts, trade mgmt. • Backtest (100). Record. Hard right edge. Bar by bar. • Use unrelated historical data. • Everything entered into spreadsheet (heavy lifting done for you)

  4. How’d You Do? • Results should include @ minimum win %, profit factor (how much per winning compared to losers), avg win/loss, trade type results, max win/loss • Chance to evaluate strength and weakness of system/plan • Spreadsheet input starting balance to work out risk % and capital needed (largest loss for conservative) • Positive expectancy? Move to forward testing (paper, demo) • Positive expectancy? Get the plan in stone.

  5. Plan Takes Shape • Built a solid foundation • When to enter. When to exit. Amount. Full exposure % • Confidence during drawdown. Confidence during losing streak. • Ignore outside influence. Ignore untested variables. Road to self-sufficient trader. • Emotions can sit on the sidelines. Rule based trading. • Is this all?

  6. Move Towards Goal • Why are you a trader? Financial freedom (Tharp) • Daily goals (simple as POQ, trade review) • Weekly goals (sticking to plan, daily reviews) • Monthly goals (X increase in account, mistake free trading) • Plan shows ballpark expectation • Capitalize to reach financial goals (risk %)

  7. Enemy Still Lurks YOU • Daily check in. Fit to trade? Shut ‘er down. • Breaking your own rules. Has to be a consequence. • Greed/Fear • Follow you trade plan. Your strategy. Your business plan • Your plan will make the process easier. Avoid the monster.

  8. Moving Forward • When to withdraw profits • Broker criteria • When to increase position size • Trade off swing/day • Extreme circumstance (power, internet) • Start of trade day • Severe drawdown

  9. Further Ahead • Plan puts you ahead of majority • No guarantee of success • Minimize the effect of losers • If/Then • Puts a damper on hope, fear and greed.

More Related