The most profitable Trading Plan ever created
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* Your Tools and Tips Blogs
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2. Xcellence Profitable Forex Trading Tools
3. Coming Soon – Top Stock Picks Blog
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* Your Trading Business Plan should be a step-by-step description
More specifically; a good trading plan does the following:
- Provides the ability to monitor performance, diagnose problems and improve performance.
- Help provide a means of reducing stress and keeping a positive attitude.
- Help to prevent psychological issues from undermining success.
- If aggressively monitored and adhered to, a plan will reduce the number of unsuccessful trades.
- A plan provides structure and procedure to help promote disciplined trading and help keep the focus on the system and not the trader.
- Permits the trader to manipulate the only controllable factor: the trader.
- Helps to prevent emotions from distorting the procedures that compose the system.
- A plan is a roadmap to help define and achieve clearly defined goals.
- A consistent way of trading will allow more successful trades.
- A successful plan-if implemented in a disciplined fashion will help instill confidence and a winning attitude.
1. Trading system
I believe a good trading system should be considered for inclusion in one’s portfolio in order to potentially enjoy superior returns.* Finding a good trading system, however, can be a very difficult process. So it becomes necessary to have a way of distinguishing good systems from the rest. Fortunately, there is a way to do this by using a demanding set of criteria that I believe must be met in order for you to consider using the system.
2. Money management rules and technical requirements
A business plan is a road map of how to get where you want to go but its greatest benefit is in producing the thought behind it.
Just because it's your plan doesn't mean it is set in concrete. It can be changed and should be reviewed on a regular basis.
Money management is about balancing risk with reward. Given the risk inherent in any investment methodology, you need to have sufficient funds and personal resolve to cover that risk so you can continue to enjoy the rewards without being knocked out of the game.
The number one rule of money management and the most effective thing you can do is to reduce your methodology’s risk in the first place. For stock traders, you do this by only trading with the predominant trend. That is, you only take long positions in bull markets and only short positions in bear markets. The reason being is that three out of four stocks will follow the predominant trend. The second rule is to ensure that the risk (drawdown percentage and ‘time to break even’) does not exceed:
1. Your emotional tolerance for losses
2. Your financial capability to live through those losses
3. Your ability to stick to your trading methodology
3. Trading self-awareness
Ask yourself,
1. How do I know when I am not focused enough to make good trading decisions?
2. What rules should you have when you are "in the groove" (should I stop trading after a certain amount of wins or should I continue trading until I start losing)?
3. What should you do if you hit a losing streak? How can you keep yourself in a positive frame of mind?
4. On the physical side, how much sleep should I get to be sharp?
5. Am I eating the right foods to help optimize my abilities?
6. Have I had a physical lately?
4. The attributes of a good Trading Method
Setup conditions – These are the specific requirements that must be met to consider a pair for a trade. These requirements are expressed in terms of technical analysis indicators, patterns and price action. The aim here is to only consider a trade when the market sets up for a high probability profit potential trade and to stand aside otherwise. This is one of the
ways required to put the odds in your favor.
Entry Rules – Once the setup conditions are in place, entry rules define the trigger necessary to actually enter into the trade. This usually means that price must behave in a certain way in order to “trigger” into a trade using, either, a market, stop, or limit order.
Initial Stop Rules – These are the rules that govern how a new position should be protected from an adverse move in the market. Since there is always risk when trading the Forex markets, it is very important to know the appropriate place to place the initial stop order. Placed too close to the market risks being stopped out prematurely. Placed too far from the market takes on too much risk. This is one of the most critical aspects of trade management. Effective Initial Stops should be place where you don’t expect the market to go and if it does, the premise of the trade is over and you should exit the trade with a small lose.
Exit Strategy Rules – These rules govern how to manage a trade to exit the trade profitably. These rules should strike a balance between protecting open profits as much as possible without risking a premature exit from the market and missing a great market move.
Okay here are the steps to be taken to become a successful Trader:
I make it my business to make money on the Stock markets, options, gold and forex,. Combined they form a Trading Plan that will make you money. I am still a disciplined Trader, but are open to seek opportunities.
My Trading Plan includes: Forex, Options, Gold, and Stock trading.
These are the basics that I always refer to:
1. The Way To Trade - "Top Trader Reveals Amazing Trading Breakthrough That's Exploding The Profit Potential Of Traders Worldwide"
* Take Action TODAY to change your FUTURE. You have taken step 1, Just 2 more steps to sprint for: 1. If you are an inexperienced trader or have never traded US stock options, And then you lack the necessary basics to be successful in the capital markets. In this case, you may choose to attend a local option seminar for thousands of dollars in order to learn these basics or go to
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2. A successful trader needs a good trading system. But that's not enough
A successful trader needs mental and emotional discipline. As Tim Murdock of Dearborn Heights, Michigan, puts it:"I have been trading for many years. I will say your Software works well. I think the "Maintaining Discipline" session is very good... as well as the "Maintaining Focus" session. They tend to do things you would not expect. For instance,"Maintaining Focus" actual helps with execution--and so does financial success module."
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3. Profitable Investment Instruments and Trends to Include in your Trading Plan
You’ve Got a Great Trading System… So Why Are You Losing?
You’ve done your homework. Countless hours of seeking out the right guru (or piecing together your own system). Weeks of monitoring your guru’s daily trade picks (or paper-trading and back-testing your homemade system).You’ve done it by the book. No seat of the pants trading for you! OK, now you’re confident. It’s time to put your money where your homework is. You’ve had your coffee and your first trade signal is before you. Confidence high. Trade made. First loss. Not a problem. You understood before you started that successful traders both win and lose and “losing is part of the overall winning”. You’ve also heard more then once that “successful traders don’t win on every trade.”Moving on, still confident. Next trade made. Another loss, but…This one hurt your pride a little because you got stopped out early in the trade, and then the market rebounded and would have hit your profit target if you weren’t stopped out. You double check. Yep, you placed the stop where your trading system told you to place it. You kind of had a feeling that the early weakness in the market was just profit-taking from the previous day’s trading, but you’re trading a system and you must stick to it. Wounded, but resilient. After a good night’s sleep and a few mouse clicks, your new daily trades are in front of you. Hey, this one looks good! It’s a little bit more risk than yesterday’s trades had, but look at that profit potential! With a smiling face, the trade is executed. With a nice start to the trade, you’re feeling good and you’ve moved your stop to breakeven, just like your system said. Read more here
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___________________________ Forex Gold and Silver Trading in gold with Easy-Forex® Trading in gold is easy with Easy-Forex®. In the Forex market, gold is considered a form of currency, and so is silver. Trading in gold is electronic, the same as other currencies. Gold is traded in a similar way to other currency pairs. Trading with gold rates Like foreign currency rates, trading with gold rates does not require the "physical" purchase or sale of the real material. You do not purchase gold that you can hold. Day-trading in gold Traders can perform day-trading in gold. Day-trading means deals are usually completed before the close of trading that day. Traders usually hold their position for a short time only, but it is not necessary to complete the deal within a day. The deal can be extended for two or three days, depending on how the trader decides to make the deal.
Until one of these three things happens, the deal continues. When your day-trading gold deal is open, it is renewed automatically every night at 22:00 GMT, and each time it is renewed, a small charge is made from your trading account. The advantage of trading in gold Generally, as the price of gold increases, the price of the US dollar falls. This is why investors use gold trading as a way of balancing their profit and loss against the US dollar. Also, as gold tends to keep its purchasing power over time, investors may buy gold to balance the effects of inflation and currency value changes. How is the price decided? The price of gold is measured by its weight. The price shows how much it costs for one ounce of gold in US dollars. Gold Investments Gold has been used for investments for a very long time. It has a high value and is an independent resource. It is not subject to individual countries or trading markets. It is not connected to companies or governments. For these reasons, investment in gold can usually help an investor to avoid some problems that can happen in the economic environment. Gold markets The gold market is a worldwide market. London and New York are the two biggest market places for gold in the world. Gold markets operate like other investment markets, similar to the stock exchange. Buying and selling happens every day with prices influenced by economic conditions within the markets. The price of gold Like any other market resource, the price of gold is decided by supply and demand. Gold has always been a valuable resource. People will often store supplies of gold during times of economic inflation. Political fighting and wars will also make people store gold. Storing gold makes supply short and demand strong – the price goes up. Making profit from gold Some investors believe they can make profit from gold when the price is rising. If they buy, the price will go higher and they can sell for a profit. Gold and market risk Gold is subject to market risk just like other currencies and goods in the market. Usually, gold has less volatility(movements up and down in value) than currencies. However, gold has been quite volatile during the past years. Gold and the Forex market In the Forex market, gold can be a protection against the US dollar. If the US dollar increases in value, the gold price decreases; if the US dollar decreases, gold increases. With this knowledge, investors can use gold trading as a way of balancing their profit and loss against the US dollar. Gold Prices Gold is a currency In the Forex market, gold is a form of currency and so is silver. They can be traded in the same way as other currencies. However there is a difference: gold and silver can only be traded against United States dollars (USD). The price of gold The price of gold is measured by its weight. The price shows how much it costs for one ounce of gold in US dollars. There are several methods of weight measurement in the special metals and stones markets. The most common is troy - a troy ounce equals about 31.10 grams; an avoirdupois ounce equals about 28.35 grams. Trading with gold and silver rates Forex trading with gold and silver rates is done in the same way as with foreign currencies. Trading is performed directly between the seller and the buyer (via the internet trading platform), and no other people or organizations are involved. Rising gold prices affect currency Rising gold prices can affect other currencies. Higher gold prices can be especially important to the currencies of major gold-producing countries. Australia is the world's third largest exporter of gold, and Canada is the world's third largest producer of gold. So, if you believe the price of gold will continue to rise, you can establish trades in the Australian dollar or the Canadian dollar because those currencies will likely become stronger. Easy-Forex® and gold trading Easy-Forex® traders who want to perform trading with gold or silver rates can regard the gold (XAU) and silver (XAG) just as they do any other foreign currency. The trade is done only against the US dollar (USD), but in all other ways the process is the same. Find out more about how to perform a Day Trade in gold and silver. |
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