Contents of a Trading Plan

A good trading plan is about good money management, money management is the most important aspect of your trading as if you fail here you mil fail in trading. This is a very personal thing and only you can write your own pan.

A good trading pan should include strategies for

• Profit Maximization and Loss Minimization.

• Your risk profile. i.e. how much are you willing to lose on a trade? Hence your sop loss policy.

• Rsk reward policy. It is important to establish your maximum exposure. It is accepted that your exposure should never exceed 5-10% of total risk capital.

• Number of trades panned per week / month- important so you are not glued in front of the computer 24 hours a day.

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