Quote from osorico:
Hey Scalper21!
Finally got your seat I see.ER is treating you, Im sure!
Osorico [Sorry to offtopic your thread IT4$]
No problem bro... this is after all a discussion board.
*** My Trading Plan ***
- Thread starter I Trade 4 Money
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No problem bro... this is after all a discussion board.
I'm 24. Graduated College with a degree in finance. And lets just say I have at least a 5 digit dollar amount at my disposal.
I could be wrong, but I think you need 25K min to day trade SPY.
Realistically more like 30K to cover any initial drawdowns.
My advice would be to simulated trading on ES, YM or NQ
and then trade 1 lots in the live account.
Interactive brokers provide a simulated trading account (but you need a live account with them too).
IT4$,
I don't know where scalper21 is going with his questions, but I'll give you MY #1 money management rule. Not really a rule, but a way of trading-life, imo. It's a variant from a line in Jurrasic Park... Just because you can doesn't mean you should.
Please keep it in mind as you evolve as a trader. Just because you have a doable amount of funds, doesn't mean you need or should put them all at risk.
Just because you have a margin account, doesn't mean you need or should trade on margin.
Just because you have sub $1000 intraday futures margin doesn't mean you need or should trade max size available to you.
etc etc etc
Trade-by-trade is how this game is won.
Keep us posted
Osorico
To all. Thanks for the responses so far. I'm gonna revise my trading plan right now. I'll definitely keep you guys posted. I'm going to be trading for the rest of my life and I'm going to be learning non-stop.
Quote from osorico:
IT4$,
I don't know where scalper21 is going with his questions, but I'll give you MY #1 money management rule. Not really a rule, but a way of trading-life, imo. It's a variant from a line in Jurrasic Park... Just because you can doesn't mean you should.
Please keep it in mind as you evolve as a trader. Just because you have a doable amount of funds, doesn't mean you need or should put them all at risk.
Just because you have a margin account, doesn't mean you need or should trade on margin.
Just because you have sub $1000 intraday futures margin doesn't mean you need or should trade max size available to you.
etc etc etc
Trade-by-trade is how this game is won.
Keep us posted
Osorico
You are jumping a little to far ahead
I think everyone should chill out a little. I asked the questions I did to make sure this kid has something to fall back on. No young man should attempt trading if they are choosing trading instead of college. Second if he does not have more than 10,000 to trade with he should get as job and save 10,000.
My advice is as follows.
First your trading plan is really a money management plan. It is a wise money management plan. I think you should now develop a backbone and stick with the framework you set up in your initial comments.
Second send me a private message. I will give you advice on how to set yourself up in the proper format so you will be a successful trader. The most important thing to do in the beginning of your trading career is keep your burn rate as low as possible. Having a daily loss limit of $100 at the beginning is very smart. I would even say trying to make it closer to $50 is a better option. Just like any other new business the beginning is usually red before it becomes green. The key is always to keep the bleeding from getting out of control before you can get green
Keep your head high!
By the way my private advice is not about the correct way to trade. My advice will be how to set yourself up as a "professional" trader. I think your money management plan is very professional. Now you just need a little help with the business side
Sean
To the OP.
GO BIG OR GO HOME
Never let anyone tell you what can't be done.
GO BIG OR GO HOME
Never let anyone tell you what can't be done.
enjoy that winner feeling
http://www.youtube.com/v/eTS-d1YPd4Y
http://www.youtube.com/v/eTS-d1YPd4Y
Revised Trading Plan.
1. Questions Regarding My Purpose and Myself:
Why do want to be a trader?
I want to be a trader because I am excited by the challenge to be successful in a discipline that is notoriously difficult and where, allegedly, 90% of participants fail. My primary objective in wanting to be a trader is to generate sufficient annual income of at least $200,000 in order to support the type of lifestyle I want to live. My secondary objective is to spend more time with my friends and family and enjoy the freedom of being able to be my own boss. These objectives are important to me because they provide purpose and direction to my life and enable me to lead a more balanced one. I believe I can achieve my objectives because I am extremely motivated and persistent.
What Sort of Trader are You?
I am a discretionary trader and my style is very aggressive - which makes me suited to scalping intra-day. I understand that I cannot predict the future and I accept that I cannot control the markets. However I can control myself, which I will do by adhering strictly to my trading plan that is detailed, specific, tested and profitable.
What are Your Strengths and Weaknesses?
My primary strength is allowing my profits to run. This contributes to âmy edgeâ and helps me towards my goal of being consistently profitable in the markets.
My primary weakness is overtrading and chasing. The following aspect of my trading plan will help to control this weakness and prevent losses from spiraling out of control. I have a pre-defined daily stop. If it is hit, I stop trading for the day.
Are You in the Right Frame of Mind to Trade?
I will only trade on days when I am rested, relaxed and not distracted by work or family etc. I will be guided by my trading plan and I will adhere to it rigidly. It will help to prevent me from making trades that are poorly conceived and executed; i.e. trades that are based on gut feeing and motivated by fear and/or greed. I will not trade on days when I am feeling off hung over, particularly tired or when I am mentally distracted by other events in my life.
2. Questions Regarding Trading Goals:
What are Your Annual Trading Goals?
My annual trading goal is to develop my trading âedgeâ in order to tip the balance of probabilities in my favor. At the moment, this comprises two separate elements, namely:
1. I model the best trading practices, including having a written, clearly laid out trading plan.
2. Read many books and magazine articles pertaining to trading and study the words of wisdom from the more experienced members of Elitetrader.com.
What are Your Weekly Trading Goals?
My weekly trading goal is to trade every day of the week in accordance with my trading plan. This will entail taking my stops instantly; sticking to my risk and money management strategies; following my exit criteria and devoting most of my time to searching for new trades and choosing only the very best setups. When I achieve this goal I will pat myself on the back by hanging out with my friends.
What are Your Daily Trading Goals?
My daily trading goal is to trade according to my plan. Today I will stick to my plan because it is detailed, specific, tested and profitable. I am confident that I have the self-discipline to adhere to it, which, in turn, will ensure that my weekly, monthly and annual goals are met.
3. Questions regarding Market and Instruments:
Which Markets will You Trade?
The instruments that I will trade are the U.S Market as well as the crude oil market.
Which Instruments will You Trade?
I will trade primarily trade SPY initially and then eventually shift towards the ES because I can incrementally increase the number of contracts I trade as my account grows without effecting the movement of the instrument (I donât have to worry about liquidity as I would with micro-cap stocks).
4. Questions Regarding What You Do Before the Market Opens:
What is Your Daily Pre-market Routine?
My daily pre-market routine comprises four key areas, namely:
1. To analyze and log yesterdayâs trades.
2. To review any open positions and update targets.
3. To assess todayâs market conditions and plan accordingly.
4. To plan the day ahead, hour by hour.
Have You Analyzed Yesterdayâs Trades?
Each day, I will ensure that yesterdayâs trades are analyzed and logged and that my trading journal is up to date. Additionally, I will check to ensure that I adhered to all aspects of my trading plan.
What are the General Market Conditions?
Before trading, I will check:
1. Index futures to see if they are flat, trending up/down or mixed.
2. To see if any key economic reports are due to be released and at what time â i.e. Michigan Sentiment.
3. To see if any key personnel are due to make announcements / speeches and at what time â i.e. Bernanke addressing Congress etc.
I aim to trade the market reaction to these reports and speeches. Therefore, I will not trade for the first 15 minutes following the speech / announcement and observe the reaction to it by the market. This will help to ensure that I trade what I see and not what I think.
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