What would you say belongs in a solid trading plan?

margin_gamble said:
just 2 things are needed

(1) Top-notch market timing skills par excellence

(2) Deep pocket = outstanding Capitalization and then some
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No sh6t. "Top-notch market timing skills" are vital to trading success. Everyone strives, aspires, to understand the market.
If a trader has the above, they don't need deep pockets...money will come to them, flow to them, like a rapid river or dam breaking.
 
MacBookProHo said:
No sh6t. "Top-notch market timing skills" are vital to trading success. Everyone strives, aspires, to understand the market.
If a trader has the above, they don't need deep pockets...money will come to them, flow to them, like a rapid river or dam breaking.
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%%
PLENTY of capital could be a a terrible idea when learning.
 
globalarbtrader said:
1) What to trade (Stock indices? Gold? Apple?), and how to trade it (futures? CFD? Cash? Options?). Costs and account size are important here.
2) When to open positions
3) What size should positions be
4) When to close positions (... how long to expect to hold them for)

Of these (2) is the least important, and the one that gets all the attention.

An example:

Trade a single instrument. Choose the cheapest instrument and product you can, given the capital you have available. SPY, for example, needs about $7K in capital.

Opening rule:

Moving average crossover: 16 day moving average minus 64 day moving average.
• If 16 day moving average > 64 day moving average: go long
• If 16 day moving average < 64 day moving average: go short

Do not open a new trade in the same direction as a recently closed trade. Wait until the opening rule has changed direction.

Position sizing:
Notional exposure =(target risk % × capital) ÷ instrument risk %

Where target risk = 12% and instrument risk is measured as annual standard deviation of returns.

Closing rule:
Trailing stop loss, with a stop loss gap set at 0.5 multiplied by the risk of the instrument, measured in annual standard deviation of returns (price units)

GAT
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%%
I like your 64 dma;
even though i dont use it, it has the advantage of front running the WSJ 65 dma/LOL:D:D
 
easymon1 said:
To GraceWilson goes a Tip of the Hat for her post from which this was lifted

Here are some tips to follow if you are new to trading-

• Develop a trading strategy and always adhere to it.
• Set a stop - loss for every trade. Otherwise, failure is almost certain.
• Don't risk more than 2% of your margin per single trade.
• Keep your emotions separate from trading.
• Never trade to compensate for your losses.
• Only trade when you feel it's the right moment.
• Don't be afraid of losses, every trader has them.
• Try to achieve more profitable trades, and have less unsuccessful trades.
https://www.elitetrader.com/et/threads/tips-for-become-a-good-trader.335906/page-3#post-5099425
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%%
Good + wise ones.
Except i dont think you can really ''keep emotions separate from trading''--but you sure can keep emotions from goofing your trading or investing. Use a written plan/resting orders, scale out + scale in sometimes.......
 
murray t turtle said:
%%
PLENTY of capital could be a a terrible idea when learning.
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I heard that! When I first started trading I wish someone would have put a gun to my head and told me I was only allowed to take a max position size of $500 or they would pull the trigger. That would have saved me a few thousand dollars.
 
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According to me solid trading plan includes :
  1. Trade research.
  2. Trade management.
  3. Trade exit plan.
One should be particular about all aspects of trading rather than just trade entry to have a solid hold of trading.
 
Your strong trading strategy might include anything you think will be useful, but it should always include:
1 Your trading motive
2 The time commitment you want to make
3 Your trading objectives
4 Your risk-taking mindset
5 Risk management strategy
6 Your strategies
 
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