TRADING TO WIN PROGRAM

"SAMPLE": Many traders show to the office without a PLAN of action for their Trading Business.... YES, trading is a business and unless you have a CLEAR GOAL and a clear way to get to the goal your chances of making it are greatly reduced.

Here is a sample of my Trading To Win Plan I followed for the month of June.

OBJECTIVES -  This month the main goal is to be net positive every week. I will increase my risk amount per trade to $xxx.xx and will implement a very strict POSITION SIZING program that will help me push myself into trading at a higher level and for higher profits. My second goal is to work on maximizing the amount of money I make per trade. This all will be measured in R terms.

TOOLS

1. MENTAL PREPARATION

·         Mental Rehearsing – Practice on a daily basis and before the market opens. Visualize the setups, the entries and the management I want to achieve.

·         Affirmations – I am patient – I am disciplined – I wait for triggers – I PLAN – I ACT

·         Process over outcome – commit to your strategies, profits are the outcome.

·         Peak Concentration separates the great traders from the average.

·         Absolute Emotional Control - Think like a sniper – position to observe.

2. GOOD TRADING PRACTICES

Ÿ  First Trade after 9:40 AM – Exception are "A" type gaps that I can enter on 5’ highs/lows.

Ÿ  Proper Position Size (R=XXX) Gaps can enter on ½R. 2 and 5 min entries ½R only. ADD.

Ÿ  3 STRIKES or 2Rs maximum loss per stock.  5Rs max. loss per day. 10R max loss week.

3. MANAGEMENT - POSITION SIZING GUIDELINES I WILL FOLLOW

For 5 minute or 2 minute PATTERNS enter with a ½R risk. When trade starts going your way and confirms the pattern in a 15 or 60 chart Scale IN to a full R risk. Add.

Ÿ  I ALWAYS WAIT FOR MY TRIGGER even on a 2 minute entry. * Scale in, add to full R. 

                * Opening Plays 1/3 to 1 / 2 R in risk

                * Climatic Plays 1/3. (Add to 1 / 2 R when trade starts working).

                * ½ R on 5 minute setups and 2 minute Triggers. (Scale in to full R)

                * Full R on 15 and 60 minute Set Ups.

                *Add in 50% increments.

4. GOAL ORIENTED TRADING Goal 15Rs. week / Ave. 3Rs per day NET.

I WILL ONLY TRADE MY BEST PATTERNS – NO SCALPING TRADES – GOOD SETUPS – DAILY

TIER ONE "A" GAPS – on 5 minute entries

TIER 2 "B" GAPS with intraday entries. 

V7 STRATEGY patterns

10 AM high plays – Midday Breakouts – Late Day Breakouts

Climatic and W patterns FULL Point.

“what you cannot do is throw away your capital in suboptimal trades” Richard Dennis

• NO PNL TRADING – Be aware of loses but don’t focus on profits while in the trade.

5. GREAT IDEAS TO FOCUS ON!
 

Ÿ  Leave some position to reach the ultimate target - see your ideas through their conclusion.

Ÿ  Prepare for adverse excursions to remove the anxiety.  “nothing ventured nothing gained”

Ÿ  Manage your trade not your THOUGHTS and FEELINGS about the trade -(don’t exit prematurely)

Ÿ  Don’t Treat reversals as a situation calling for blame. You have a plan - execute it.

Ÿ  Set stop profit levels (trailing stops) to maximize returns NOT to achieve a sense of certainty.

Ÿ  Once you set your stop level visualize how I would feel if that stop is hit. How would I respond to that worst case scenario. Also figure out WHAT my NEXT course of action will be. (build resilience)

Ÿ  SNAG YOUR TRADES – Document all the actions you take – Review – Learn

 TMO - Mario O - Professional Equities Trader