10 Steps To Building A Winning Trading Plan

Kirk Du Plessis 0 Comments. There are some basic principles and rules that will make you successful trading regardless of what you trade.

These are interchangeable for stock traders, option traders, future traders, and even forex traders. But once you have a reliable set of trading rules, your discipline can help you reap huge rewards.

Read these rules before your day starts for just 7 days! I promise you that your whole way of thinking and trading will change in just 1 week.

Then come back and let us know how it went via the Facebook Comments. This is the 1 reason why traders fail.

It is human nature to want to vary or break rules and it takes discipline to continue to act in accordance with the established rules. The markets are changing every single day and the strategies that you may have used 5 years ago might not work now.

You need to continue to educate yourself on a daily basis. Read an article or watch a video tutorial , and overtime you will build a huge knowledge base that is fundamental to successful trading. Per your trading plan you should already know when and where you will cut your losses. Some traders have an even lower tolerance for loss than you might have which is fine.

The key point here is to have set points stop loss within the limits of your tolerance for loss.

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Hear me out on this. Let profits run wild. Place a trailing stop loss order and see how high it can go from there after locking in gains.

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Realistically, I can never pick tops and neither can you so why exit? Never feel a stock has risen too high too quickly or fallen too low too quickly either. Never jump from one trading style to another. Master one style and strategy first rather than becoming average at several.

Focus and work hard to completely understand every angle, abnormality, risk, reward of say Credit Spreads and then move on to Iron Condors.

Options trading can be overwhelming if you don't know where to start. Each program was hand-crafted to help you regardless of your current options trading experience. Click here to choose your track? So stop hoping and wishing already! Everything is reflected in the price and volume when it comes to technical analysis — this is why I favor it over any other system.

Master the charts and let them guide you. We live in a period of time where there is limitless opportunity to build massive wealth. The wealth of information and training online today about trading is incredible — and for the most part free.

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Work hard now and the reward will be great at the end of the day. Start trading more often and stop analyzing the markets to death. Now of course don't take this over board and become a day trader right. The point here is that you set up a system and continue to make trades - even if they are small trades 1 or 2 contracts at a time. Most people just analyze and analyze but never get in!

How are you ever going to learn? Start small but keep trading. If you learn to master trading with only a few shares, then trading a couple hundred or thousand shares will be much more successful.

Successful trading isn't solely about trading - it's also about being emotionally and physically strong.

Reduce the stress every day by taking time off the computer and working on other areas of your life — especially family. A stressed out trader will not make it in the long run. We all trade for 2 simple reasons: In order to succeed in any market you need to set your expectations high.

Stay motivated and set realistic and achievable goals that continue to take you to the next level. And finally, ask for help from others, get a coach, or join a trading forum to keep you accountable.

They say that writing down your goals is half the battle. So add your comments below and let everyone know that you are taking this challenge and describe your goals! Kirk founded Option Alpha in early and currently serves as the Head Trader. Kirk currently lives in Pennsylvania USA with his beautiful wife and two daughters.

About The Author Kirk Du Plessis. Free Video Training Courses. Real Money, LIVE Trades. Daily Options Trading Alerts.