TRADING PLAN

A.Know Yourself, Know Your Purpose

Why do You Want to be a Trader?
I want to be a trader because I wanted to be some1 who is always makin money where else 90% of participants fail. My primary objective in wanting to be a trader because I wanted to make a fortune, to be well – known. In order to do this im targeting RM ------. I believe
I can achieve my objectives because my name is -------!!!!!!!!

What Sort of Trader are You?
I am a short term trader my style is very aggressive which makes me suited to scalping intraday or holding for few days. 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 following my own trading plan.

What are Your Strengths and Weaknesses?
My primary strength is my ability to spot chart pattern and breakouts.This is important because d risk at the time of d entry shud b vry low.
My primary weakness is I keeps on forgetin my rules!! Which makes me always losses my sense n go d easy way that is gamble (f***!!).

Are You in the Right Frame of Mind to Trade?
I will only trade on days when im not distracted by relationship problem or family. 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 will not trade on days when I am mentally distracted by other events in my life).

What are Your Income Targets?
My financial targets are ------ in 1+2+5 years. Dat means monthly income will b around rm------.


B.Trading Goals
In achievin my ------ target i intend to take -------- to go for vacation around the world.

What are Your Monthly Trading Goals?
My monthly trading goal is achieve consistent profitability every month. If I can do that I will reward myself by going for relaxing.

What are Your Weekly Trading Goals?
My weekly trading goal is to trade every day of the week in accordance with my trading plan; 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 treatin myself some beer.





C.Markets, Instruments & Timeframes

Which Markets will You Trade?
The markets that I will trade for now are forex n klse

Which Instruments will You Trade?
The instruments that I will trade are major forex pairs n strong FA ctr.

Which Timeframes will You Trade?
As a swing trader, I will use 1hr charts to enter and exit positions and 15 minute n 4hr charts to monitor my open positions. For scalpin purpose I will use 1hr chart to determine trend, 15min/5min to enter or exit positions


D.Tools of the Trade

Which Broker and Trading Platform will You Use to Trade?
My choice of broker is for now is ODL as its d onli broker that I found hav volume dat suits my tradin characteristics. Soon will try to gauge another broker dat can let me trade commodities as well.


E.Before the Market Opens

What is Your Daily Pre-market Routine?
My daily pre-market routine comprises five key areas, namely
1. To analyse and log yesterday’s trades.
2. To review any open positions and update targets and stops.
3. To assess today’s market conditions and plan accordingly.
4. Lookin around in bloomberg n forexfactory


F.Risk & Money Management

What is Your Attitude Towards Risk?
Market risk is measured by the amount of time you are in the market. It could be seconds, minutes, hours, days or weeks. The longer you are in the market the greater the chance something will go wrong.

What is the Overall Market Risk?
My maximum exposure in the market will not exceed a combined total of 15% of my capital at any one time

What is the Broker and Hardware Risk?
My main broker is ODL n will find another back up broker. In extreme circumstances when my main broker is down, I have the option of hedging my positions with my other broker. In the event that my PC crashes . . . I always have my mobile on and fully charged while trading, with numbers of the key departments of both brokers stored in the memory).


What is the Strategy Risk?
I will monitor the drawdown on all my trading strategies. In the event that this figure . . .
(exceeds 25%, I will stop trading that strategy immediately and review the whole approach).

SPECIFIC RISK MANAGEMENT
My setup(s) is clearly defined in section G of my plan

What is the Risk-Reward Ratio?
For every trade I enter, I will decide in advance where to place my stop loss in the event that the trade goes against me.

GENERAL MONEY MANAGEMENT
Large Drawdowns and Profits – What Will You do?
In the event of a large drawdown, I will not credit additional capital until I see y I was losing d trade or when im back in trail of profit. For now, When my profit increase to usd1000, I will transfer back to local bank.


G.Trade Strategies, Setups & Entries

Which Strategies Will You Trade?
My primary trading strategy is designed for swing trading. It is a chart pattern readin strategy. Chart pattern is formed due to transactions been done by buyer n seller a.k.a demand n supply. It is 1 of d way to forecast wats smart money/those wit big bucks r plannin to do. Basically, this tactics consist of zig zag(5,5,3), volume wit 20SMA, fractals, OBV, n weekly pivot point.

My secondary trading strategy is designed for quick gain/ scalpin purpose. It is using Volume spread analysis (VSA). D objective for this tactics is NOT TO MAKE maximum profit. this tactics consist of volume wit 20SMA, fractals, weekly n daily pivot point.

What are Your Setups?
The setup for my primary strategy comprises the following elements

1. Spottin profitable chart pattern. I.e. double or triple tops/ H & S/ cups wit handle/ bump n run/ triangles/ measured move up/ measured move down/ high flags. Broadenin formation is NOT adviceable to trade. Chart pattern preferable classic type ( rememb a classic BO b4 certain move is – hoverin of d prices)

2. Increase position size if d chart pattern hav confirmations from OBV, where this indicator also shows breakout.

3. ONLI trade a pattern wit good breakout volume (above volume SMA (20)).

4. Watchout for weekly pivot support n resistance.

5. Stop loss : d break of new lows / highs for at least 2 bars in 1hr TF
or violations of chart pattern.

The setup for my secondary strategy comprises the following elements

1. VSA & LUCK!!!

2. Watchout where daily & weekly pivot lies n also trendlines.

How Will You Find Your Setups?
Trading is confined to one or two instruments, so this shudnt b a problem.

Which Signals Will Trigger Your Entry?
The entry trigger for my primary strategy is
i. Price ‘hoverin’ near BO price n confirmation from OBV
ii.Price stays above BO for 2-3bars 1hr TF wit reduction of volume from oppostie move n confirmations from OBV(not really nessecary)
iii.Positions can b open although there is no price chart pattern. As it is based purely OBV. D risk is high, therefore, position size, daily pivot,weekly pivot, trendline of price n OBV is IMPORTANT. .
The entry trigger for my secondary strategy is mainly from VSA analysis (exhaustion, selling climax, buyin climax,strength n weakness) dat it requires confirmation from 3 diffrent TF.


H.After the Market Closes
Everytime I open / close trades based on my tradin tactics (not included scalpin tactics) , I WILL jot down in my tradin journal to make sure dat I noe wats wrong n to keep my self from running away from my tradin plan. And I WILL save it at other place to make sure d data wont loss like dat.


I.Golden Trading Rules

1.THE MARKET PAYS YOU TO BEDISCIPLINED.
Trading with discipline will put more money in your pocket and take less money out. The one constant truth concerning the markets is that discipline =increased profits.

2.BE DISCIPLINED EVERY DAY, IN EVERY TRADE, AND THE MARKET WILL REWARD YOU. BUT DON’T CLAIM TO BE DISCIPLINED IF YOU ARE NOT 100 PERCENT OF THE TIME.

3.ALWAYS LOWER YOUR TRADE SIZE WHEN YOU’RE TRADING POORLY.
All good traders follow this rule. Why continue to lose on five lots (contracts) per trade when you could save yourself a lot of money by lowering your trade size down to a one lot on your next trade? If I have two losing trades in a row, I always lower my trade size down to a one lot. If my next two trades are profitable, then I move my trade size back up to my original lot size. It.s like a batter in baseball who has struck out his last two times at bat. The next time up he will choke up on the bat, shorten his swing and try to make contact. Trading is the same: lower your trade size, try to make a tick or two . or even scratch the trade . and then raise your trade size after two consecutive winning trades.

4.NEVER TURN A WINNER INTO A LOSER.

5.DEVELOP A METHODOLOGY AND STICK WITH IT. DON’T CHANGE METHODOLOGIES FROM DAY TO DAY.
I require my .students. to actually write down the specific market prerequisites (setups) that must take place in order for them to make a trade. I don.t necessarily care what the methodology is, but I do want them to make sure that they have a set of rules, market setups or price action that must appear in order for them to take the trade. You must have a game plan. If you have a proven methodology but it doesn.t seem to be working in a given trading session, don.t go home that night and try to devise another one. If your methodology works more than one-half of the trading sessions, then stick with it.

6.YOU ALWAYS WANT TO BE ABLE TO COME BACK AND PLAY THE NEXT DAY.
Never put yourself in the precarious position of losing more money than you can afford. The worst feeling in the world is wanting to trade and not being able to do so because the equity in your account is too low and your brokerage firm will not allow you to continue unless you submit more funds. I require my students to place daily downside limits on their performance. For example, your daily loss limit can never exceed $500. Once you reach the $500 loss limit, you must turn your PC off and call it a day. You can always come back tomorrow.

7.EARN THE RIGHT TO TRADE BIGGER.

8.GET OUT OF YOUR LOSERS.

9.DON’T HOPE AND PRAY. IF YOU DO, YOU WILL LOSE.

10.DON’T WORRY ABOUT NEWS. IT’S HISTORY.
Do not trade off of the reporting. It.s too late.

11.DON’T SPECULATE. IF YOU DO,YOU WILL LOSE.
In all of the years that I have been a trader and associated with traders, I have never met a successful speculator. It is impossible to speculate and consistently print large winners. Don.t be a speculator. Be a trader. short-term scalping of the markets is the answer. The probability of a winning day or week is greatly increased if you trade short term: small winners and even smaller losses.

12.LOVE TO LOSE MONEY
This rule is the one that I get the most questions and feedback on by traders from all over the world. Traders ask, .What do you mean, love to lose money. Are you crazy?. No, I.m not crazy. What I mean is to accept the fact that you are going to have losing trades throughout the trading session. Get out of your losers quickly. Love to get out of your losers quickly. It will save you a lot of trading capital and will make you a much better trader.

13.IF YOUR TRADE IS NOT GOING ANYWHERE IN A GIVEN
TIMEFRAME, IT’S TIME TO EXIT.
This rule relates to the theory of capital flow. It is trading capital that pushes a market one way or another. An oversupply or imbalance of buy orders will push the market up. An oversupply of sell orders will push the market lower. When price stagnation is present (as typically happens many times throughout the trading session), the market and its participants are telling us that, at the present time, they are happy or satisfied with the prevailing bid and offer. You don.t want to be in the market at these times. The market is not going
anywhere. It is a waste of time, capital and emotional energy. It.s much better to wait for the market to heat up a little and then place your trade.

14.NEVER TAKE A BIG LOSS. ONLY A BIG LOSS CAN HURT YOU.

15.HIT SINGLES NOT HOME RUNS.
Just as I don.t know of any successful speculators, I don.t know of any trader who goes into a trade expecting to hit a home run and then actually having it happen. You should never approach a trade with the idea that it.s going to be a huge winner. Sometimes they turn out that way, but the times that I have a hit a home run on a position is most definitely luck, not skill. My intent on the trade was to produce a small winner but, because I had the trade on, and at the same time (as luck would have it), the Fed unexpectedly entered the market, I unwittingly had a huge winner. This probably has happened to me less than five times in 20 years.

16.CONSISTENCY BUILDS CONFIDENCE AND CONTROL.MAKE THE SAME
TYPE OF TRADES OVER AND OVER AGAIN – BE A BRICKLAYER.

17.DON’T OVER-ANALYZE. DON’T PROCRASTINATE. DON’T HESITATE. IF YOU DO,YOU WILL LOSE.

18.ALL TRADERS ARE CREATED EQUAL IN THE EYES OF THE MARKET.

19.IT’S THE MARKET ITSELF THAT WIELDS THE ULTIMATE SCALE OF JUSTICE.