Is a Business Plan as Day Trader Necessary?

Stock Trading Business Plan

The first thing you need is for it to be written down.  You will need to hold yourself accountable for your trading actions going forward.Consistency in trading the markets comes with responsibility. You must have it written down so you can look at the market, watch the market unfold, and know exactly what you’re going to do no matter what happens.

I’ll tell you right now, if you do not write your trading plan down so you have if/then scenarios for whatever is unfolding in the market, you are not taking responsibility for what happens next. You’re going to blame the market or any of a number of different things for your results.

The first thing you need to do is have a written trading plan. You will need Easy to identify, high-probability trades. Here’s the important part: Easy to identify. If it’s hard to find, it’s not there. If it’s too difficult to make a decision, it’s going to be hard for you to repeat.

The High Probability Trader

A high-probability trade is what we’re looking for. This is probably one of the biggest stumbling blocks that traders have to get over in the beginning. There is no trade that’s going to be correct all the time. You need to know what’s probably going to happen next, not what’s definitely going to happen next. I think it’s safe to say that’s a mental block a lot of traders have a problem with in the beginning.

The perfect trade does not exist. It might exist once out of every 100 trading days. You might find it. It’s about looking for a scenario that has the best chance of working out, and then managing the trade and the risk of that trade.

We’ve all come to the markets for various reasons, money being the common thread, and expectations.  More than likely we’ve all taken some major losses as well( I know I have)

Once you have an idea of what you bring to the markets, a Stock Trading Business Plan bad or good is a must. Now the real work begins. Just like any job , the markets require sweat equity. That may mean numerous hours and late nights spent poring over data or reading research. It’s not easy.

It’s not easy because it takes time. Ask anyone that has found success and longevity in their career, financially related or not. They’ll tell you it takes hard work and dedication. We all know this yet so many think trading is different. It’s not.

Treat trading just like any other business, create a Stock Trading Business Plan to become successful,  Remember if its not measured it cannot be improved.

About the Author

Pete is a full-time trader and mentor since 2000. Author of Equity Trader 101 and the Order Flow Method. He is dedicated to help self-directed traders to bust through the six-figure level.

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