Trading Plan Template Name: Date: Motivation and Goals
Why do I want to trade?My starting capital is? Monetary Goal in 5 years: Monetary Goal in 1 year: Monetary Goal in 6 months: Monetary Goal per month: Monetary Goal per week: Approximately how many Pips/Points does thisrepresent? What rate of return does this represent? Are these goals realistic? How do these goals in line with my trading style? Additional thoughts?
Risk and Money Management
It is crucial inmoney management to understand the pip/point value, the bid/ask spread, any trade related commission and the volatility of each instrument traded. You should know each of these before attempting totrade any instrument. What is the maximum % of my equity I will risk on any one trade? How many trades in a row can I lose before I am out of equity? I will not have more than (over multiple trades) %of my total account equity at risk at any one time
Post Trade (also see section on Trade Documentation): What is my winning percentage? (Initially, when there is a small sample size, this percentagemay vary greatly, as you place more trades you will get a better idea) What is my true (post trade) Risk/Reward Ratio? What are my additional investments? (Data, Internet, Supplies, etc.)
What time(s) of day do I plan to trade? What markets / banking centers are open at that time? What currency pairs are most active then? How do I typically feel at that time of the day? Is thatfeasible with my current schedule?
Timing – How Long**
** Do not worry if at first you do not know. Everyone has a different psychological make-up and the type of trader you are should becomeself evident very quickly. Never ever, ever let anyone else determine your style for you! Also, please keep in mind that it is entirely possible, depending on your strategy and instruments traded, to...