Blueprint of a successful Stock trading plan

Advertisement

Blueprint of a successful Stock trading plan

BLUEPRINT OF A TRADING PLAN

Stock Trading

Here is the template for "A Trading Plan". Although overall guidelines remain the same, every person has to develop their own trading plan on the basis of their style. No plans will work for everyone. Hope this will help you to be more disciplined!

stock trading methodology

1. METHODOLOGY


  1. Choose Your Trading system/setup
  2. Trend following
  3. Counter trend
  4. Range Bound
  5. Mean reversion
  6. Breakouts/ Patterns
  7. Choose the tools you need Moving Averages Volume Trend Lines
  8. Choose your time frame Weekly, Daily For larger trend &context (Hourly, 15M, 5M To time your entries) 
  9. Choose the instruments you will trade (index or stocks). Backtest your ideas or rules & finalize a limited number of instruments to trade
  10. Define entry & exits (SL, Trailing SL & targets)

2RISK MANAGEMENT


  • Define your total trading capital (1 Lakh, 5 Lakhs, 10 Lakhs)
  • Define your risk/max loss per trade(should NOT exceed 1% per trade &do not take more than 5 at a time)
  • Based on the instrument chosen define the quantity (position size per trade)
  • Adjust your max risk/loss as per SL level but don't change your SL
  • Define how will you use your profits? Plan to take away a % of profits regularly
  • IF YOU CAN MANAGE YOUR RISK WELL, YOUR PROFITS WILL BE TAKEN CARE AUTOMATICALLY SLs are MUST for every trade


3. EMOTIONAL BALANCE

  • Maintain a trading journal where you track "all your trades". This is a must DO task
  • Define a process to do post mortem of failed trades. You need to consistently review & improve your style/ methodology
  • Start noticing your emotions before, during or after you close a trade. This is important to track the reason why you entered a trade & why you excited?
  • NEVER take revenge trades after you make big losses. The most important thing to recover after a big loss is self-confidence & NOT money
  • Pursue your hobbies, spend time with family, friends or do things which makes you emotionally strong


4.Tools

If you are a full-time trader & you trade for a living, you need to have the following tools

  • Stable laptop or desktop at home
  • Robust internet (primary) & a backup internet link (secondary)
  • A mobile phone (as a backup) with internet 8 trading app
  • Have multiple screens: attached to your laptop/desktop if you do multiple time frame trading
  • Phone number of your broker
  • Robust power backup to Cover you from power outages for 6-7 hours
  • Above all SILENCE to have 100% FOCUS. Stay away from social media during the trading time!


Some Other Quotas:
stock quotas


Read More:

Post a Comment

44 Comments

  1. This blog are really helpful for stock trader. Thanks for share with us. Keep up the post more stock market tips on daily basis.

    ReplyDelete

  2. Having fear of loss in stock market trading? Join capitalstars financial reasearch pvt.ltd and get fre expert trading guidance and make very good profit.
    CapitalStars Investor & Trading Awareness Program
    CapitalStars
    CapitalStars Pricing

    ReplyDelete
  3. This Blog is good and benificial for traders and investors those who are interesed in sharemarket.
    Equity Tips

    ReplyDelete
  4. This Information is really useful for people who are investing in the stock market or start to invest in the Indian stock market.

    ReplyDelete
  5. That's blog is serially very beneficial for new and old traders and I read article of this page, some new topic which I got for stock market so then also I will say that If you want to learn and if you want to know about fully trading plan so you can see our website and increased your stock market knowledge......
    dezire research

    ReplyDelete
  6. Hello, I would like to appreciate your work. It’s a great platform got to learn a lot. Your data is really worthy. Thank you so much. Keep it up!

     Forex Trading

     Forex Market

    ReplyDelete
  7. Informative post. Thanks for sharing.
    Stock Investor provides leatest Indian stock market news and Live BSE/NSE Sensex & Nifty updates. Get the information related to Finance Portfolio Investment/Management.

    Online Trading

    Stock Trading

    Equity trading

    Currency Trading

    ReplyDelete
  8. We are truly thankful for your blog entry. You will discover a great deal of methodologies in the wake of going to your post. I was precisely scanning for. A debt of gratitude is in order for such post and please keep it up.
    ways to earn money online

    ReplyDelete
  9. It's very interesting, Thanks for sharing a valuable information to us & Knowledgeable also, keep on sharing like this.

    Stock Investor provides leatest Indian stock market news and Live BSE/NSE Sensex & Nifty updates.Find the relevant updates regarding Buy & Sell....

    ShareTrading

    Demat Account

    Equity Trading

    Stock Trading


    ReplyDelete
  10. It's very interesting, Thanks for sharing a valuable information to us & Knowledgeable also, keep on sharing like this.

    Stock Investor provides leatest Indian stock market news and Live BSE/NSE Sensex & Nifty updates.Find the relevant updates regarding Buy & Sell....

    ShareTrading

    Demat Account

    Equity Trading

    Stock Trading

    ReplyDelete
  11. Great Post! thanks for sharing useful information with us. If you want to know more about this topic, then click on the below links.
    Thank You!

     Equity Market
      Currency Trading

     Forex Trading

     Foreign Exchange Market

    ReplyDelete
  12. Thanks for sharing. It very useful and great blog for eachone.
    Please click here if you wish to receive further offers from us:
       Foreign Exchange Market
     Financial Market
      Currency Trading
     Currency Trading

    ReplyDelete
  13. This comment has been removed by the author.

    ReplyDelete
  14. It is really quality & outstanding post. keep it up!

    Latest stock market news and updates on the stockinvestor...buy or sell stock ideas by experts for minute to minute updates...
    StockTrading
    Stock Trading
    Share Trading
    Share Trading

    ReplyDelete
  15. Great Information! Its looking Nice.....

    You can invest in stocks yourself by buying individual Stocks & Shares or mutual funds,IPOs, or get help investing in stocks by Visit stockinvestor.in
    phillips carbon share price
    shakti pumps share price
    ramco industries
    mahindra amc
    bajaj electricals share price
    kolte patil developers ltd
    sbi insurance
    bsesensex

    ReplyDelete
  16. Great Information! Its looking Nice.....

    You can invest in stocks yourself by buying individual Stocks & Shares or mutual funds,IPOs, or get help investing in stocks by Visit stockinvestor.in
    phillips carbon share price
    shakti pumps share price
    ramco industries
    mahindra amc
    bajaj electricals share price
    kolte patil developers ltd
    sbi insurance
    bsesensex

    ReplyDelete
  17. FinTech Weekly is a news solution that maintains you approximately date with one of the most important devlopments in business. We do not concentrate on the most up to date product launches yet try to catch the existing patterns as well as tendencies in the financial organisation. Our newsletter covers specialist understandings as well as high-quality short articles taking a look at the sector's condition and forecasting development in the marketplace. Take a look at our variety of services consisting of the latest news. Bruc Bond endeavor to lead the financial sector with sustainability, customizable product offering, and open communication. At Bruc Bond we aim to make 21st century banking straightforward, simple, and transparent.

    ReplyDelete
  18. nice information thanks for sharing valuable content with us we also provide great information related to your blog feel free to visit our Forex market

    ReplyDelete
  19. nice information thanks for sharing valuable content with us we also provide great information related to your blog feel free to visit our Sensex.

    ReplyDelete
  20. I just came across this site and found this informative blog about dentistry. Thanks for sharing. Realy, it's a great blog. I think Baid Leasing and Finance Co. Ltd. may useful for you. Check once and get more facts.
    Bajaj Consumer Care Limited
    Bajaj Finance Limited
    Bajaj Electricals Limited

    ReplyDelete
  21. Thanks for sharing. Really useful information and it’s a great article with good resources. Checkout our Stock Investor website for more latest stock market update.
    Bharat Agri Fert & Realty Stock Price
    Bhansali Engg live share price
    Bhandari Hosiery Exports Ltd Share Price
    Bhakti Gems and Jewellery Share Price

    ReplyDelete
  22. where you'll find information, videos, and everything you want to know about an outstanding way to increase your income. bitcoin

    ReplyDelete

  23. Nice article. stockinvestor.in shares information related to stock market like stock market analysis, advices the tips to invest in stock market and also provides stock market recommendations.
    Equity market
    trading
    currency pairs

    ReplyDelete
  24. Really Nice Information If You Gave Us in Communication.Thanks Sharing valuable Informations....Did you know whare to Invest in Stock Market

    Intraday Tips
    stock market tips
    share market tips
    Stock Tips
    Share Tips
    Mcx Tips
    Indian Stock Market tips

    ReplyDelete
  25. Someone necessarily lend a hand to make significantly articles I might state. This is the first time I frequented your web page and so far? I amazed with the analysis you made to create this actual submit extraordinary.
    Famous Astrologer In Usa, Best Love Astrologer in Texas,

    ReplyDelete
  26. This is very interesting content! I have thoroughly enjoyed reading your points and have come to the conclusion that you are right about many of them. You are great.

    Top Best Famous Astrologer in Jhalawar,
    Top Best Famous Black Magic Removal in Dungarpur,
    Top Best & Famous Clairvoyant Readers in Jhalawar,
    Top Best Famous Face Reader in Kota,

    ReplyDelete
  27. Thanks for the informative article! waiting for your next post Private hedge fund

    ReplyDelete
  28. Good tips. Thank you for the information you provided us. This will definitely help traders. For more tips like this, visit -

    MCX commodity live rate in India

    ReplyDelete
  29. CreditQ is India's first platform that facilitates businesses to report their credit defaulters and help them to identify the defaulters and avoid falling prey to fraudulent activities. It is the best way to provide B2B solution. It connects and suggest the safest business environment.

    ReplyDelete