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We often hear that we need to follow a plan and stick to it.

All well and good if the plan is profitable.

Disaster if its doomed to ruin.

The question is --as it is here--what do I need in my plan.

The answer is---in my opinion---SIMPLICITY.

Personally I think we need a number of plans.

We are not going to know with certainty when a plan "type" is likely to out perform until well into the conditions the plan "type" is designed for.

The first thing I believe we should strive to learn is

Identifying the stage in which the market we are trading is in.

Those instruments will be either in.

(1) Accumulation

OR

(2) Distribution

OR

(3) Trending--up or down.

Whether your designing a method to trade a singular entity or a portfolio.

You should have methods suited to all 3 and its

highly unlikely one method or plan will suit ALL THREE

At times one will out perform others.

You'll also find that you can design "switches" which turn one on or off or

indicate further positions should not be taken or systems should be cranked up .

Then we need to know how to balance our portfolios and IMPORTANTLY when to shift more funds

from one method to the other to maximize our return and minimize our losses/risk.

Eventually you will need the tools and if inclined go through the learning curve if your going to become a developer of systems/methods/or plans. You can also pay experts to test and code your ideas. Not a bad way to go if your time poor some of these guys are amazing and very helpful.

As many have stated your learning curve will go exponential!

You'll soon understand why a plan is likely to fail or succeed. Ideas like trending systems /swing systems / Mean reversion systems / scalps / short term / position and the like will all bring on a new and more informed meaning.

You'll be armed with a set of numbers which will give you confidence in your plan.

A BLUEPRINT of strings of win and losses, draw downs and recovery times

profits and returns on $s invested Multiple system entry tests (Montecarlo testing) which will give you a range of results deviating from the mean expected return of your plan..

Armed with these you'll be able to trade your plan and compare against your blueprints. If the plan deviates out side of them then you'll know your trading in conditions likely to be different to those in which your selected data base resided. You know ---NOT TO STICK TO THE PLAN and STOP

Another thing will occur---you'll learn why and how your discretionary can be profitable.

You'll learn how to NOT GUESS when trading you'll learn money management/trade Management and possibly Portfolio Management. You'll feel confident in leverage and compounding.

I have 3 recommendations---for people on your position.

(1) Invest some $$s with Nick Radge and join "The Chartist" if you invest in his top membership---around a grand you'll be able to watch his trade setups live you'll be able to read his trade reasoning and trade management in real time over 3 different portfolios and excellent analysis and commentary on a number of Indexes and Commodities. Following a seasoned pro daily is INVALUABLE.

(2) Buy and read "The Universal Principals of Successful Trading" By Brent Penfold.

(3) Buy and Read "Un Holy Grails by Nick Radge.

Then I agree you'll be in the position to investigate software and Howard Bandy's works.

Its worth the journey--be sure you take it.