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Trading Plan Template

Trading plan

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0% found this document useful (0 votes)
40 views14 pages

Trading Plan Template

Trading plan

Uploaded by

RajaBada
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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“I felt incredibly frustrated, confused and

constantly anxious about my trading.


I had a burning desire to make it big, but I just
couldn’t crack the code.
Then, I decided to get serious about writing my
trading plan and I’ve never looked back!...”

Discover the key to the money vault used by every


professional trader on the planet, and develop a
gigantic breakthrough in your own trading results!

“Sick of struggling with inconsistent


trading results, but want to be a
heavy hitter in the markets?

“Then you need to develop a trading


plan, write it down, and trade with it
consistently. This tool is your secret
weapon when it comes to trading with
confidence and clarity.

“Every single professional trader


knows this, and now, you can
implement the closely guarded secrets
of this incredible tool. I’m about to
show you how.”

Louise Bedford

The best investment you’ll ever make

You might be wondering why I’m providing this secret of trading to you without
expecting anything in return. Fair question.

More than anything, I want to see you unlock your hidden potential as a trader.

After achieving multiple decades of success in the markets, I’ve come to realise
that it’s now my heart-felt desire to see others succeed.

I have already trained thousands of other traders to blow the lid off their trading
results, and now I want to help you. I just adore empowering people with the

www.tradinggame.com.au 1
© The Trading Game Pty Ltd
concepts I’ve learned the hard way, through trial and error.

I’ve tried hundreds of different strategies in the markets. Some work. Some don’t.
I want to be your shortcut and give you an unfair advantage in the sharemarket so
that you’ll be able to achieve what you really want through trading.

I want to give you the right information so you don’t make the costly mistakes I’ve
seen hundreds of other traders make - traders who haven’t trained with me.

So, what is the best investment you’ll ever make?

Invest in your own sharemarket education, and you’ll never look back!

I can transmit the skills I’ve developed, through decades of trading my own
accounts, directly to you. To my knowledge, and I’ve done a lot of research on this,
no-one has created more successful traders in Australia than I have.

If you go to my website, you’ll see multiple pages of Rave Reviews from regular
people who took my strategies, applied my methods and have achieved
phenomenal results. However, that being said, they all took action and did
something. And when they did, they achieved fabulous results.

The success I’ve empowered all of these people to create for themselves is just as
important as the success I’ve personally achieved. As many people don’t want to
go public and say what they’ve achieved, these dozens of testimonials are just a
snapshot of the success achieved by literally thousands and thousands of people
just like you. They’re regular people… REAL people… earning REAL money using
techniques they’ve learned from me as a professional trader.

Trade with the Professionals!

None of these sharemarket winners tried to ‘reinvent the wheel’. They all focused
on strategies that I’ve been using for years… and put them to work in their own
customised trading plans.

Here is what one trader, who is using my methods, has to say:

Louise, you're my hero, and my No.1 mentor.


You've always found time for me, listened to my
concerns, encouraged me in my endeavours,
believed in me and was kind to me.

I have learned share-trading strategies from you,


which I tested and they worked for me. I learned
about trading psychology, technical analysis, the
candle sticks charting from your home study
courses and different CD and DVD programs and
all of your books and articles."

Stefan & Ludmila Jiranek, Perth

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© The Trading Game Pty Ltd
Suppose you had trained
with Louise 5 years ago.
Where would your life be today?

Imagine the life choices that would open up for you!


I know the difference that a trading plan has made to the results my traders have
achieved. People just like you. I’ve seen the changes they’ve made in their lives
with the cars they drive, the schools they now send their children to, and the
holidays they now enjoy. The evidence is overwhelming. I’m incredibly passionate
about this as I’ve seen the results, and I know they can be just around the corner
for you.

Now, a bit of background about why a trading plan is important and the difference
it can make to your life.

How much more time are


you going to let pass you by?
Both winning and losing trades teach us important lessons. Losing trades often
provide the greatest opportunities for personal growth as traders. As an aerobics
instructor of mine once yelled in the middle of a class: “That which does not kill us,
strengthens us”.

Over time, a robust trading plan will produce greater profits than losses. A good
trade is made when you follow your trading plan to the letter regardless of a profit
or loss result. It is a sign of a disciplined trader. If you are having trouble
developing your own plan, I suggest that you plagiarise the ideas of other
traders/authors who you relate to. After you have tried out their concepts, you can
make alterations to suit your situation. Duplicate before you innovate.

Years ago during my university days, I was told of a study of Harvard business
graduates. The study was designed to establish which are the common factors that
lead graduates to ultimately succeed financially.

Interestingly, 20 or so years after their degrees, 5% of the graduates were earning


95% of the total money earned by all graduates. It was the same 5% who had
written down their goals and dreams all those years ago. The maintenance of a
written life plan somehow helped these graduates to attain their goals. Some even
carried their personal mission statements in their wallets.

Do you want to be in the top 5% of investors? Quick—grab a pen and paper and
get writing. Print out this Trading Plan Template and fill it in, before you make
another trade. It is absolutely essential! Take heart from the words of Warren
Buffett:

To invest successfully over a lifetime does not require a


stratospheric IQ, unusual business insights, or inside information.
What’s needed is a sound framework for making decisions and the
ability to keep emotions from corroding that framework.

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© The Trading Game Pty Ltd
A trading plan can provide you with the framework that you need to succeed in the
sharemarket.

To help you draw up your trading plan, let’s have a quick look at three essential
areas - keeping a trading diary, monitoring your active positions and developing a
trading system.

1. Keep a trading diary

Because trading is largely a solitary occupation, you will need to be responsible for
your own trading development. Achieving objectivity is a difficult prospect. You will
accomplish trading excellence by regularly analysing your own strengths and
weaknesses.

My key to maintaining objectivity is to keep a trading diary. I keep an A4 ring


binder folder, and assign one page to each share that I buy. All of the most
successful traders use some form of recording their trading history. Before entering
a trade, I record all of my thoughts and analysis. Unless I can justify my trade on
paper, I will not enter the position.

After each trade has been completed, write down your profit, your loss, the amount
of time that you held the share and the main lessons that you have learned. After
making a profit or a loss I record:

 What did I do well?


 What would I do differently if I repeated this trade?

Unfortunately, some traders must go through some sort of catastrophe to finally


get their own attention, and make an effort to improve their system. Psychologists
call this ‘one-trial learning’.

The one-trial learning experience is so excruciatingly devastating that it results in


an instant change in behaviour—painful, yet effective. A quick whack to the side of
the head can sometimes be the best thing to ever happen to you, as long as your
head doesn’t get completely knocked off in the process.

By following the guidelines set out by The Trading Game and in the books written
by Louise Bedford, it’s unlikely that you will need to go through such an experience
in order to learn how to trade effectively.

2. Monitoring your positions

For short-term traders there are some systems that will allow you to register
‘alarms’ once a share has moved above or below a predetermined price level. Many
broking platforms offer features such as an automatic ‘buy-stop order’ or ‘stop-loss
order’.

A buy stop involves an immediate purchase of an instrument as soon as it goes


above a set price. Some providers allow for these stops to only activate after a
certain volume of shares has been bought or sold at the price that you stipulate.
This automation may assist if you do not have the facility to closely watch the
market.

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© The Trading Game Pty Ltd
For more thinly-traded stocks, slippage can occur where your order is executed at a
slightly different level to that which you would prefer. Ultimately, it’s really up to
you to monitor your open positions in the market.

Perhaps you could investigate whether your broking platform has an alert system
to send alerts to your phone?

3. Developing a trading system

A trading system typically includes three components:

 your entry methodology


 your exit methodology
 your position sizing strategy - which is a part of money management.

The entry methodology and exit methodology deals with the techniques you will
employ to enter and exit your trades.

Money management deals with how much capital you invest in each trade as your
portfolio value fluctuates. You must calculate how much of your capital to invest in
each position. This is called position sizing.

Also important is Risk Management which deals with your risk profile. Your risk
profile takes into consideration how much you are prepared to lose on a trade
before you can no longer hold on, or how much of your portfolio you are prepared
to lose before you stop trading altogether (that is, maximum portfolio drawdown).

This is just a brief overview of how to keep a trading diary, monitor your active
positions, and develop a trading system. For a more complete exploration of these
important areas, refer to my book Trading Secrets.

Your Blueprint for Success


Suppose you were planning to purchase a business that had the potential to create
an unsurpassed lifestyle for you and your family. Would you spend some time
discovering the critical components necessary for success? Of course you would.
You’d also work your tail off to develop a business plan that would set you up for
the future.

The sharemarket has the potential to change your lifestyle forever. It’s up to you to
lay out a road-map that will take you from where you are now, to where you want
to be. That’s where a trading plan will assist.

You’ll get the most benefit if you spend at least half a day considering the issues
described below. The time that you invest in considering all of these possibilities
will set you apart from the majority of traders.

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© The Trading Game Pty Ltd
1. Clearly write out your objectives. Are you trading for wealth creation, income,
or for fun? Your objectives should be as specific as possible. Exactly what are
you hoping to achieve as a trader?

2. Clearly describe your entry triggers, your profit and loss exit triggers and how
you will decide on how to position size (i.e. how much money to put into each
position).

3. What are your psychological strengths and weaknesses in relation to trading?


What steps are you taking to overcome your weaknesses and maximise your
strengths? Are you teachable? Do you have self-accountability?

4. What structure will you trade under e.g. partnership, trust, company etc?
If you are uncertain, visit your accountant or tax agent to ensure that you are
setting up with the best structure for your own individual situation.

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© The Trading Game Pty Ltd
5. How much time per day/per week will you devote to trading? How many
distractions will you face while you are trading? Is there any way to overcome
these distractions?

6. What size of percentage returns are you expecting per annum? This will have
an impact on your choice of markets to trade.

7. How much capital do you have to devote to your trading system? Will you use
only one trading system, or several?

8. Which markets will you focus on e.g. futures, managed funds, equities, CFDs,
or options? Will you trade Australian shares, or overseas markets? How will
you allocate capital between these areas?

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© The Trading Game Pty Ltd
9. If you experience a consecutive string of losses, how will you react? What
percentage of your initial capital can you tolerate losing before you will stop
trading temporarily/permanently? What procedure will you follow once you’ve
made losses?

10. What procedures will you follow on a day-to-day, week-to-week basis etc. to
search for opportunities, monitor your existing positions and review your
performance? Is your life structured to allow you to follow a routine? What
routines do you have now that will help you become a good trader?

11. Over what time frame will you trade, e.g. intra-day, daily, weekly? How long
do you envisage holding each position? If you are already trading, how long is
your average hold time? Does this fit in with your psychological profile and
goals?

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© The Trading Game Pty Ltd
12. What percentage of your capital are you willing to risk on each trade? When, if
ever, will you alter this percentage?

13. How will you keep a record of your transactions? What statistics will you keep
to determine whether you’ve been a success? What key risk management
metrics will you use to maintain and manage your portfolio?

14. How will you measure your performance? How often will you review your
existing portfolio? How will you know when you have done well or poorly?
When trading poorly, how will you know if it’s your trading plan or you that
needs work?

15. How will you define and handle a windfall profit?

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© The Trading Game Pty Ltd
16. What will you do with your open positions when you go on holidays?

17. How do you plan to deduct money from your trading account e.g. salary?
When will this be conducted? How will this affect your position sizing etc?
Will trading profits be supplemental or a primary income for you? How will
you fund medical, holiday, and emergency expenses as a full-time trader?

18. Can you draw/print out your perfect trade to act as a template or archetype
for future trades?

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© The Trading Game Pty Ltd
The questions outlined here are designed to get you thinking in the right direction.
You may find that they raise other questions you will need to address.

If you don’t know how to answer any of these questions, you need to realise this is
telling you something as well. It’s telling you that you need to do more research
before you plunge into the markets in a big way.

This is a marathon, rather than a sprint. It would be better to stand back, research
the areas you need to learn about, and then jump into the markets.

I want you to develop your trading skills and make more money in the next few
years than you have made in your life – and the only way you’ll be able to do this
is through dedication to your own education.

Your trading plan should be reviewed on a frequent basis to ensure that your
system is in line with your current objectives. Short-term traders should review this
process every month. If you are a medium-term or longer-term trader, every 3 – 6
months should suffice.

It’s essential that your plan blends in with your lifestyle and personality and it is
impossible for me to fully understand your own private situation. No two traders,
and therefore trading plans, are the same. This is your blueprint for success—no-
one else’s.

I only teach the personal share trading methods and techniques that I use every
day, under fire – no untested theories… only what works.

If you have a fire burning deep inside you that is driving you towards achieving
success, then I’d like to be with you every step of the way.

I’ve been trading for more than half of my life. I’m one of the few traders who
actually pulls back the curtain and shows you how it really is.

Stay in touch by reading my monthly Trading Game email newsletters, plug into
the Trading Game Forum, and commit to your own education. I’ll be with you every
step of the way.

You’ve taken the first step towards achieving success in the sharemarket.
Congratulations! To show you how committed I am to your success, here is my
email address: [email protected]

I look at every email personally, so if there is anything I can do to make your


journey even easier, be sure to let me know.

Happy trading!

www.tradinggame.com.au 11
© The Trading Game Pty Ltd
About Louise Bedford
Louise Bedford is a full-time private trader and a
best-selling author of five books on the
stockmarket.

She is a behavioural finance expert and has


degrees in Psychology and Business.

Louise has been running the 6-month


repeat-for-free www.tradinggame.com.au
Mentor Program since the year 2000, and she’s
also the founder of www.talkingtrading.com.au,
a free weekly trading podcast.

Known as ‘the corporate executive who lost the


use of her arms and achieved financial freedom
by trading with a pen in her mouth’ – she will
inspire you to achieve your trading best.

When she’s not hanging out with her traders,


she is spending time with her two children and
husband, lifting weights at the gym, and
enjoying yoga.

www.tradinggame.com.au

The Trading Game Pty Ltd (ACN: 099 576 253) is an AFSL holder (Licence no: 468163). This information is correct at
the time of publishing and may not be reproduced without formal permission. It is of a general nature and does not
take into account your objectives, financial situation or needs. Before acting on any of the information you should
consider its appropriateness, having regard to your own objectives, financial situation and needs.

www.tradinggame.com.au 12
© The Trading Game Pty Ltd
Your Next Step
I hope I have given you a buzz with some of my views about trading plans.

You’ve shown that you’re willing to grow, develop, and challenge your own mindset.
For that, I applaud you!

The Mentor Program


Louise Bedford runs the Trading Game Mentor Program.

Since the year 2000 this program has continuously


booked out every time it opened for bookings.

Mentorees love that they can repeat the course as many times as they like for free.

Have a look at www.tradinggame.com.au for more information and make sure you
register for Priority Notification.

If you’re the type of trader who wants to learn how to trade every instrument over
every timeframe, confidently, by using your own trading plan, then the Mentor
Program is just what you’ve been looking for.

Why is Louise giving you this Trading Plan Template for free?
I’ll tell you why. So she can begin a relationship with you.

Louise says:

“I’m hoping that after you’ve used my free resources, one day you’ll come to
one of my advanced seminars.
I love helping people who want to take control of their sharemarket returns.
It’s my goal to put money into share traders’ pockets and make it stick, even if
they only have thirty minutes a day available and limited knowledge about
trading.”

Excellent traders are action takers. Don’t delay.


Go to www.tradinggame.com.au and grab your
FREE trading pack right now.

www.tradinggame.com.au 13
© The Trading Game Pty Ltd

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