By James Stanley, Trading Instructor

The Trader's Plan

"Good fortune is what happens when opportunity meets desire."

  • Napoleon Hill

Finding quotes exuding the benefits of planning is not hard to do. Above are just two of the more common, reverent quotes exalting the benefits of planning. Or there is this one:

"He who fails to plan, plans to 1."

In the Money Management module of the On-Demand Video Course, we recommend a minimum of 2:1 or greater; meaning if I'm taking the same trade with 100 pips of risk as above, I'm looking for a minimum of 200 pips to the upside if I'm correct.

How am I going to enter trades?

This is one of the more simplistic parts of the trading plan, as this will often be dictated by the trading strategy (or strategies) itself. I want to make sure that I've written out the exact situation that I am looking for.

If I were using the 'Model Strategy,' that David and Tim had used in "When is the Best Time of Day to Trade Forex?"this section of the trading plan would read:

I'm looking to trade RSI crossovers between 2:00 PM EST and 6:00 AM EST