| It seems nowadays the stock market investor has | | | | trading plan and not your emotions. |
| more pitfalls than ever that must be overcome to | | | | What should be in your stock market trading plan? |
| ensure success, which is why you must have a stock | | | | You should state the rules by which you will be |
| market trading plan. It is often difficult to know | | | | trading by, such as when you will enter and exit |
| where to start when choosing the right plan for you. | | | | trades, and what percentage of your money you are |
| Everyone is different and so too are their investment | | | | willing to commit to 1 trade. You should also |
| goals, financial situations and tolerance for risk. The | | | | determine what type stocks you will be trading, big |
| first thing you will need to do is determine what type | | | | cap, penny stocks or maybe even stock options. |
| of investor you are. | | | | whatever you decide in your plan be sure to place |
| So what type of investors need a stock market | | | | them in your trading diary or tape them to your desk |
| trading plan? The passive investor might only be | | | | in plain sight so that you will remember to follow |
| interested in low risk low return investments that | | | | them. |
| have little need for daily guidance but have a | | | | There is no right or wrong way to devise a stock |
| predictable rate of return. The active investor, who is | | | | market trading plan. The biggest mistake beginners |
| making longer term , more risky trading decisions | | | | make is that, even though they make a plan they |
| with individual stocks, or maybe a swing trader who | | | | are unable to follow it. What good is it to make a |
| only stays in positions for a short period of time? | | | | plan if you aren't going to use it? So if your a |
| Your answer to these questions will greatly influence | | | | beginning trader or maybe even a trader with some |
| what type of stock market trading plan will fit your | | | | experience under your belt, take the time to sit |
| circumstances. | | | | down and draw a financial road map that will govern |
| Why do you need a stock market trading plan? A | | | | your trading. Remember, over 90% of traders lose |
| good trading plan acts as a financial road map to | | | | money in the stock market. By making a stock |
| guide your decisions. You must use this road map | | | | market trading plan you will go a long way towards |
| during trading hours so that your emotions, fear or | | | | getting yourself in that 10% that are making money. |
| possibly even greed dont get the better of your | | | | While this is certainly not an in-depth article on making |
| trading decisions. Consistent results require that you | | | | a stock market trading plan there are many good |
| make consistent decisions based your stock market | | | | books on this subject available. |