Step 3—Designing Your Trading Plan for Each Entry and Exit

Stacking Up the Probabilities

Your trading plan should be designed to enhance your chances of success. If it doesn’t, it’s not going to be good enough to keep you to the discipline of the plan in the first place. The better your trading plan is, the more you’ll feel compelled to stick with it—its record of success should be the acid test.

In Chapters 3 and 4 we covered just some of the Technical and Fundamental Analysis techniques, which can either be used as filters for finding stocks or as indicators for assessing trend or price direction. Different traders and investors have their own preferences, and there are many discretionary trading styles that can work. It’s up to you and your own psychology. Some people can trade 300+ tickets per day successfully, others just ten every year. Ultimately you’re the one who has to decide here. If your style of trading leans toward the former, then make sure you choose a day trading firm that will give you the necessary training, support and, more importantly, speed of execution.