Plan your Trade and Trade your Plan!

Whats your Plan

This is really a no brainer. If you want to achieve success, consistent success, in this game you have to have a plan. It is similar to everything else in life. No matter which market you trade be it Futures, Commodity or Currency, you need a trading plan.

Goal Strategy

Trading has to be goal oriented. You need to set goals and a pragmatic trading plan is what helps you achieve those goals, day in and day out. Notice, I have used the word “Pragmatic” here. I have seen many new traders as well as some seasoned ones who set unrealistic, impractical goals while trading. Most newbies start with small accounts and hope to double/triple their capital every year. It is good to be optimistic but merely being optimistic is not going to make you any money in this game. You have to be cautiously optimistic. Don’t try to bite more than you can chew. Newbies keep making these mistakes and are washed out sooner than they realize.

A trading plan should reflect the personality of the trader. I cannot stress more on this! No trader is the same. What works very well for me may lead to losses for you. You can have a simple 3 step Trading Plan or any elaborate one which takes into account every nitty gritty. A simple 3 step plan would include how to get in, how to manage the trade (via SL/Trailing SL) and when lastly, when to get out. Whether you have a simple plan or a more focussed one, YOU HAVE TO HAVE A TRADING PLAN. Without it, I guarantee, you won’t last long in this game.

What is even more important than having a plan is to follow it to the tee. Once you make a plan and take it live you have to adhere to all the Trading rules in it. That is how it works. A Postit note which shouts “FOLLOW YOUR PLAN” should be stuck on every trader’s terminal. Many traders fall prey to the idea of overriding their trading plan based on gut instinct. Let me tell you this, you might be right ocassionally, but you are going to be very wrong in the long term. Trading is a long term endeavour, unless it is a pursued as a hobby in which case it will cost you a lot of money.

All this eventually boils down to the core principle of Discipline. You have to have the discipline to follow your plan. You cannot keep changing it every now and then. The formulation and execution of your Trading Plan will reflect and determine your trading success.

Every 6 months or so conduct a review of your trading plan. Add some news rules or delete some depending on your experience. Trading is a continously evolving occupation. You have to keep thinking, keep improving, keep adding to it. It is a a never ending catharsis of human psychology.

Remember : Your Trading Plan should reflect the kind of trader you are. Make your own plan. Do not copy someone else’s plan as that is a sure shot recipe to failure.

Trade your plan 1

If you are a trader and do not have a Trading Plan, NOW is the time to make one. It will go a long way in making you a very competent trader. One of the things I help traders in my Boring Trader Course is how to make a trading plan which suits your personality. If you need more info on The Boring Trader course do email me at Alternatively, you can click on the Services tab to the left.

So go ahead, Plan your Trade and Trade your Plan!

To your Boring Success!!


Taking a loss is one of the coolest thing in Trading!!

Yes! You read that right. You must have probably read that heading a couple of times just to make sure you read it right. There are a few axioms associated with Successful Boring Trading and Taking a loss and being cool about it is one of them.

At the outset let me make it amply clear (you already know this) that you are going to have a loss at some point of time in your trading. Now this could be once in a while (depending on how good your trading system/approach is) or it could be a string of losses (I will address how to handle a losing streak in a separate article). Either ways YOU WILL HAVE A LOSS AND YOU HAVE TO DEAL WITH IT. PERIOD.

How you deal with a loss determines what kind of a trader you are. The great ones just love taking a loss. They love it because they understand, appreciate and realise that they or their system have gone wrong and the predetermined loss point has hit. They take the loss and move on to the next trade. Almost with robot like precision. And it has to be robotlike. You can’t harp on a losing trade cause you would lose the next money making opportunity which presents itself.

As a Boring Trader, I think taking a loss is the coolest thing. It makes me realise, rather quickly, that I have made a mistake and lets me get out with MINIMUM DAMAGE. How cool is that? This is possible by having a predetermined Stop Loss. I will address various Stop Loss techniques in a separate post. But seriously, think about it. You are in the midst of a trade which you are reasonably confident about, yet it goes the other way and hits your stop loss. You take the loss, think for a moment or two if the reverse position needs to be taken and move on. Cool as a Cucumber. It’s that easy…..You think so? Nah, it is not that easy because it involves losing MONEY and nothing is easy when money is involved, especially losing it.

Taking a loss

So how am I so cool about losing. Easy..Remember Discipline??? YOU have to inculcate the DISCIPLINE of cutting your losses short and let your profits run (I might add).

So the next time you put on a trade and it goes the other way and hits your cool about it..know that it could have gone much worse..think if a reverse trade needs to be taken and move on…This will take practise..a lot of it but trust me you will be glad you did it in the end.

Go ahead..Be Boring and Make some money!!

To your Boring Success!!!