Most people when they first started trading, they don’t have a trading plan. All they think when they go long or short on a stock is PROFITs.
What would most people do when the stock go against them? –>Leave it and hope that that stock will come back “This is what we call them a Bagholder ”
My trading plan:
1. Risk and Reward ( >3 Rewards to 1 time Risk)
2. Support/ Resistance, (Breakout vs break down)
3. Timeframe (Premarket 8am – 9.30am), Market open (9.30am to 9.45am), After Market Open (9.45 to 10.30), Normal Trading (10.30 to 1pm), End of day (1pm to 4pm)
4. Exit Strategy (Cut loss) (1% – 2%)
5. Lock in profit (7%-15%)
The above are my trading plan based on my experience on the market so far. (The trading plan will evolve as my experience grows)
Actual execution plan:
- Only buy on reversal after dip at the opening (U shape) or else DON’T Buy
- Only short on the top (or 2nd top) or else DON’T Short
- For MOMO, only buy on first/ second up candle or the profit taking next leg up
Be DISCIPLINE or else don’t trade!!!!!
Timothy Sykes also done a good video explaining about his 7 Step Trading Plan as shown on the video below: