Beginner's Trading Plan
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So_Cynical
The Contrarian Averager
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Stating the obvious perhaps..entry and exit strategy's 
First up you need to understand what type of person you are...as in what's your comfort zones Re: risk / reward etc.
First up you need to understand what type of person you are...as in what's your comfort zones Re: risk / reward etc.
Wysiwyg
Everyone wants money
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Greetings .. I can see by your mistake ridden communication that any foray into share trading would also be mistake ridden. You want to walk before you can crawl. I would say most follow that path. Part of a beginners trading plan would be assessing ones own psychological makeup. Otherwise you will likely make many repeated losses (mistakes) because your makeup doesn't match your trading approach .
The 'tips' given on forums will mostly go over your head and will be of little help to make a transition from the no idea stage.
Education is helpful and basic education is where to start. Many people have to learn how to learn which is something not often considered.
http://www.asx.com.au/resources/education/classes/shares/index.htm
.. I can see by your mistake ridden communication that any foray into share trading would also be mistake ridden. You want to walk before you can crawl. I would say most follow that path. Part of a beginners trading plan would be assessing ones own psychological makeup. Otherwise you will likely make many repeated losses (mistakes) because your makeup doesn't match your trading approach . The 'tips' given on forums will mostly go over your head and will be of little help to make a transition from the no idea stage.
Education is helpful and basic education is where to start. Many people have to learn how to learn which is something not often considered.
http://www.asx.com.au/resources/education/classes/shares/index.htm
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Trend Hunter,
Any danger of you saying anything of value here rather than just sending people to your web site??
The first things DJG needs to do are define what his/her initial foray into the market is all about.
Define what style of trading/investment suits the time available.
Find what is comfortable with the psyche.
On a demo account, try something stupid/out there in terms of known knowns. If it blows up, no problem, learn from where it went wrong.
brty
Any danger of you saying anything of value here rather than just sending people to your web site??
The first things DJG needs to do are define what his/her initial foray into the market is all about.
Define what style of trading/investment suits the time available.
Find what is comfortable with the psyche.
On a demo account, try something stupid/out there in terms of known knowns. If it blows up, no problem, learn from where it went wrong.
brty
Julia
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First, have you read through this thread?
https://www.aussiestockforums.com/forums/showthread.php?t=14370
Sir O has put together the basic information beginners need to know.
Two, have you completed the Education modules on the ASX website?
Three, have you worked through the Education section on your online broker's website?
(I'm assuming it's not just Etrade who produces this very useful resource.)
Imo until you have a clear understanding of how the market works, the various potential pitfalls etc., you are getting way ahead of yourself with any sort of 'trading plan'.
What is your aim? You don't say whether you want to build up a p/f of blue chips with a view to longer term holds, or if you plan to buy penny dreadfuls.
What do you see yourself as? A trader or an investor? What do you think is the difference?
How much capital do you intend to use?
https://www.aussiestockforums.com/forums/showthread.php?t=14370
Sir O has put together the basic information beginners need to know.
Two, have you completed the Education modules on the ASX website?
Three, have you worked through the Education section on your online broker's website?
(I'm assuming it's not just Etrade who produces this very useful resource.)
Imo until you have a clear understanding of how the market works, the various potential pitfalls etc., you are getting way ahead of yourself with any sort of 'trading plan'.
What is your aim? You don't say whether you want to build up a p/f of blue chips with a view to longer term holds, or if you plan to buy penny dreadfuls.
What do you see yourself as? A trader or an investor? What do you think is the difference?
How much capital do you intend to use?
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Commsec have an education section - not sure how it compares with Etrades. But the asx website have a great deal of FREE information for people just starting out so I would read all of that first.
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Sorry Brty, didn't know that providing a resource to help other traders was against the law.
Heres some questions your Trading Plan should answer...
Heres some questions your Trading Plan should answer...
- What are your Life Goals & Trading Goals?
- What is your Trade Entry Method?
- What are your Trade Exit Methods?
- What type of orders will you use to enter & exit?
- What are your Money Management Techniques ?
- How will you manage your Position Risk versus Reward?
- What is your Process for Open Trade Review & finding New Trades Picks?
- What is your Trading Success Profile?
- How will you Review your Trading System to measure & improve?
- What is your Trading Daily Routine
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Trendhunter,
Looking at your avatar, if that is you then I was possibly trading before you were born.
I have no objection to people pointing to other resources, I have a problem with those who just point to their websites without offering information on this forum. You are here give the information here.
I disagree with your first point. Life goals are not necessary in the initial stages of trading.
The rest of your "points" well, I couldn't be bothered with at this time.
A persons "life goals" will change many times. Asking an 18? year old is really ridiculous.
brty
Looking at your avatar, if that is you then I was possibly trading before you were born.
I have no objection to people pointing to other resources, I have a problem with those who just point to their websites without offering information on this forum. You are here give the information here.
I disagree with your first point. Life goals are not necessary in the initial stages of trading.
The rest of your "points" well, I couldn't be bothered with at this time.
A persons "life goals" will change many times. Asking an 18? year old is really ridiculous.
brty
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Hi Brty,
Sorry to have upset you for some reason, but I think your being a bit harsh.
In Dangaff intial question
I offered suggestion to use a template, info, or person/mentor to prompt/guide him through setting up a Trading Plan. And also to keep it simple, including a 10 point list of what to include.
Who wants to spend hours/days/years trying to figure out, by yourself, how to trade successfully in the markets. The reality is some people try to figure it out by themselves for years, and never even get any closer to being successful. Why not leverage other peoples knowledge.....
I disagree with your point about "not including life goals in your trading plan".
Your Trading Plan is your own evolving document that you can improve and update/review as time goes on, and you learn. So as your life goals change you can easily update your trading plan. Your Life Goals are your fuel for achievment and to push through when times get tough, which comes in handy especialy when you are a :newbie: to Trading.
So why does an 18 year old have any less right to have Life Goals. There is no age limit reqiurement on having dreams, desires, or Life Goals.
In fact if you look an 18 year olds life goals, they will usually be signifantly bolder, bigger & brighter than someone much older. Simply because most people are conditioned to accept less from life as we get older.
I know I wish I had of set my Life Goals at the age of 18.
So I think the key to being successful, if you don't know where to start, is to soak up as much knowledge from other people as you can. There are loads of resources out there (not just my website), you've just got to work out what you want to learn.
Regards,
Cade :aus:
p.s. Yes Brty that is a photo is of me
Sorry to have upset you for some reason, but I think your being a bit harsh.
In Dangaff intial question
I offered suggestion to use a template, info, or person/mentor to prompt/guide him through setting up a Trading Plan. And also to keep it simple, including a 10 point list of what to include.
Who wants to spend hours/days/years trying to figure out, by yourself, how to trade successfully in the markets. The reality is some people try to figure it out by themselves for years, and never even get any closer to being successful. Why not leverage other peoples knowledge.....
I disagree with your point about "not including life goals in your trading plan".
Your Trading Plan is your own evolving document that you can improve and update/review as time goes on, and you learn. So as your life goals change you can easily update your trading plan. Your Life Goals are your fuel for achievment and to push through when times get tough, which comes in handy especialy when you are a :newbie: to Trading.
So why does an 18 year old have any less right to have Life Goals. There is no age limit reqiurement on having dreams, desires, or Life Goals.
In fact if you look an 18 year olds life goals, they will usually be signifantly bolder, bigger & brighter than someone much older. Simply because most people are conditioned to accept less from life as we get older.
I know I wish I had of set my Life Goals at the age of 18.
So I think the key to being successful, if you don't know where to start, is to soak up as much knowledge from other people as you can. There are loads of resources out there (not just my website), you've just got to work out what you want to learn.
Regards,
Cade :aus:
p.s. Yes Brty that is a photo is of me
tech/a
No Ordinary Duck
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Plans are fine.
But if you have no idea if your plan is profitable your wasting time and energy.---Theorising and Hypothesising
You have to know how to devise a winning plan.
The core is simple.
You must have more income than expenditure.
There are ONLY 3 ways of doing this.
(1) Have more winners than net losers
(2) Have Much larger net wins than net losses
(3) A combination of both.
Test and verify.
But if you have no idea if your plan is profitable your wasting time and energy.---Theorising and Hypothesising
You have to know how to devise a winning plan.
The core is simple.
You must have more income than expenditure.
There are ONLY 3 ways of doing this.
(1) Have more winners than net losers
(2) Have Much larger net wins than net losses
(3) A combination of both.
Test and verify.
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Trendhunter,
What Dangaff is probably asking for, is the answer to these questions...
not the questions.
The above is not harsh at all. You are a member of this forum, the question was asked on this forum.
That sounds so much like all those self help books, yet I would be willing to bet that most 18 year olds have goals of making some money easily and quickly, and having a good time before they get old (25).
Dangaff,
Can I suggest you spend many hours reading through the Trading Strategies/Systems section of this forum, then come back with more specific questions.
brty
What Dangaff is probably asking for, is the answer to these questions...
not the questions.
The above is not harsh at all. You are a member of this forum, the question was asked on this forum.
That sounds so much like all those self help books, yet I would be willing to bet that most 18 year olds have goals of making some money easily and quickly, and having a good time before they get old (25).
Dangaff,
Can I suggest you spend many hours reading through the Trading Strategies/Systems section of this forum, then come back with more specific questions.
brty
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I, wholeheartedly disagree with a vengeance, that 25 is OLD. People that age STILL think about having a good time, quick money, fast cars and fast women to boot.
This aint the 1930's, old man [j/k]
:
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mazza,
Re-read carefully, I did not say that 25 was old. I stated that to an 18 YO, 25 seems old.
When you get to 25, things change, doesn't seem old at all, same at 35, and 45. Hell, 60 YO doesn't seem that old to me these days...
brty
Re-read carefully, I did not say that 25 was old. I stated that to an 18 YO, 25 seems old.
When you get to 25, things change, doesn't seem old at all, same at 35, and 45. Hell, 60 YO doesn't seem that old to me these days...
brty
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Dangaff heres
worth.
Decide whether you want to be a Discretionary or Systems Trader.
Do this by using free online platforms :
Discretionary: CFD trial accounts
Systems: Ninja Trader or MT4 and free data
If you want to be a systems trader all the Pscho babble is 95% irrelevant.
Next decide on type of market ,costs of trades and Money management.
Trend Traders List would be relevant in a trading plan but not in that order
2,3&4 should be least important IMO .
worth.Decide whether you want to be a Discretionary or Systems Trader.
Do this by using free online platforms :
Discretionary: CFD trial accounts
Systems: Ninja Trader or MT4 and free data
If you want to be a systems trader all the Pscho babble is 95% irrelevant.
Next decide on type of market ,costs of trades and Money management.
Trend Traders List would be relevant in a trading plan but not in that order
2,3&4 should be least important IMO .
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Hi Tech/A
:iagree: with what you have said here below, except to say that I believe it is only one aspect of a trading plan, albiet the most important.
Without the comination of a Successful Trade Entry/Exit System and Money Mangement Rules, your fighting an uphill battle to be profitable,which essential what I think you are saying. As a beginner its a great place to start.
A Trading plan must be simple enough to follow, yet have be detailed enough you could hand to someone else and they could execute.
Eventually once you have your Trade Entry/Exit System figured out, your going to want to include the other areas I highlighted, if you want to really improve your performance.
Cade :aus:
:iagree: with what you have said here below, except to say that I believe it is only one aspect of a trading plan, albiet the most important.
Without the comination of a Successful Trade Entry/Exit System and Money Mangement Rules, your fighting an uphill battle to be profitable,which essential what I think you are saying. As a beginner its a great place to start.
A Trading plan must be simple enough to follow, yet have be detailed enough you could hand to someone else and they could execute.
Eventually once you have your Trade Entry/Exit System figured out, your going to want to include the other areas I highlighted, if you want to really improve your performance.
Cade :aus:
Trembling Hand
Can be found on the bid
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Tend Hunter, Very interesting that you chose to cut out the most important bit of Techs post
And decided to emphasise all the trading gumph that spruikers, spammers & snake oilers tend to concentrate on.
oh! and people who cannot trade.
And decided to emphasise all the trading gumph that spruikers, spammers & snake oilers tend to concentrate on.
oh! and people who cannot trade.
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Ah! Trembling Hand you are a very funny man
With lines like that you might get a gig at the Melbourne comedy festival.
With lines like that you might get a gig at the Melbourne comedy festival.
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Ah! Trembling Hand you are a very funny man
With lines like that you might get a gig at the Melbourne comedy festival.
I really hate MLM schemes
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