Trade Plan

A Bad Trade Plan Is Better Than No Trade Plan

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Traders often talk about the need to be patient but to be patient, we must know what we are being patient for. That is why we have a trade plan and know ahead of time exactly where to enter, where to place a stop, where to exit, and how much size to put on.

In this post, I continue with our trade planning exercise of 30 planned trades by making a trade plan for LEN. Keep in mind that the exercise is all about learning consistency and discipline and not about the method or whether the trade wins or loses.

In the video, I speak of not being worried about losing all 30 trades in a row. It’s not that I have steel nerves, it’s that I have planned ahead of time for 30 losses with my position size.

Nothing Works, Either The Trader Works or Doesn’t Work

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In this post, I’ll be sharing a trade plan for IOT, demonstrating the importance of creating a consistent and structured approach to trading. A well-defined trade plan offers the only control a trader has in the ever-changing and unpredictable environment of the markets.

Initially, the process of developing a detailed trade plan may seem tedious. This is a natural resistance from our minds, which often shy away from structured approaches. However, the focus of this post is to encourage you to move beyond searching for the ‘perfect’ method and instead build a solid foundation of learning discipline and consistency.

Implementing a focused, consistent method is like a framework that you can learn from and even design new methods from within that framework. The key is to focus on being consistent in what we do.

In the accompanying video, I show the components and processes of a swing trade and how I incorporate these elements into my trading methods. Instead of thinking purely in terms of technical analysis, I encourage you to consider structuring your approach around the simple dynamics of buyers and sellers, to gauge who is in control at any given moment.

Clip From Live Session: It’s All About Price, Not You

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This is a clip for one of our Live Language of Markets sessions. It was an active day in the markets, so I used the opportunity to demonstrate and ground teachings in an S&P E-Mini market. I walk us through the process of calmly following and trading a market. I show that with an understanding of market structure, we can easily and quickly acclimate ourselves to any market. From there, we can follow the unfolding process of price flow smoothly, changing from long to short back and forth. We do this by making it all about price and what it wants instead of all about us and what we want. The next step is to trade when appropriate with discipline and consistency accepting stops and wins. We know ahead of time, what gets us in, how we will manage the trade, and how we will exit with 5:1 R/R.