Simple Reasons a Trading Plan is More Powerful Than You Think

in this video guys we’re gonna talk about the main reasons for constructing a solid trading plan stay tuned hatred it’s warm welcome to you angry joining me alright so listen if you’ve been around a while you know that I’m a big big fan of a trading plan it’s something we focus on a lot in our traders mastermind it’s something I’ve talked about loads of times in my price action program you know guys if you watch a video as well I’d go on about it and that’s because it’s the one thing you can do that cost you nothing but time that is absolutely guaranteed to make you better now it’s in guaranteed to make you profitable trader but absolutely guarantees to make you a better trader as one of our members said in the mastermind a couple of debt a couple of weeks ago the call he said listen if you don’t have a trading plan you are guaranteed to fail there is no profitable trader out there who doesn’t have a plan of attack when it comes to trading

so there’s I’m gonna guarantee you success but it guarantee if you don’t have a plan you’re guaranteed to fail not some big statement admitting we don’t do many guarantees here because you know mark is the market but you can understand why because so often guys we as train it’s nothing made this mistake hold my hands up guys back in 2001 2002 2003 those first kind of three years and I was getting rolling I was trading everything in anything any vehicle any asset any market any strategy any style and of course just burned through my initial account just like it was you know I’ve snuck in on sweets it was just crazy so and in fact I’m gonna do a video and talk a lot more about that and some of the things maybe we can learn from them anyway the point is guys is that if you don’t have a specific plan of action you just have no focus and the market is full of noise it’s full of this vehicle this asset this strategy this timeframe this guy’s doing that

this girl’s doing that and it’s easy to get you especially the newer trader to get kind of shiny object syndrome if you have a plan

number one what you’re doing is you’re telling everyone or we’re telling you yourself should I say how focused and professional you are

you know you wouldn’t start any other business of that I plan you wouldn’t go and open a restaurant that planning to open a garage of that plan you wouldn’t start a software company without a plan you’ve got an idea of what you’re going to do same with trading so in that initial moment of constructing the plan you are telling yourself I’m a

professional

you know I am or remember me not professional from the industry stand the definition of the word but you’re pro Qing it as a professional you’re taking the time to allocate brainpower to working out where you’re going to be how you’re going to trade and so that’s the most important point the second point is that it gives you a roadmap to stick to when the chips are down when you’re struggling which you will as almost guaranteed is well not a couple of guarantees in one video here you almost certainly will struggle at some point being able to go back to the plan and going right I just need to stick to what I’m supposed to be doing and get through this period and come out of the side and the plan might be a 30 day plan a 15 day plan a 60-day plan knowing exactly what you’re going to do each time you step in front of the screens each time you pull the trigger because then it gives you structure if you’ve got a direction of where you want to go if you go off course you can push yourself back on course you don’t have to be flailing around and let me know where you’re going to go the third thing is that it gives you something to work off at the end of that period because if you stuck to a plan and let’s say you have three strategies for example momentum ignition time strategy talked about loads of times those you’re on the program know about that don’t go to details about that just imagine that you’re buying some kind of pullback or something could have trade for a continuation to move leave it or that that may well work or it may well not work depending on what your parameters using in the market your trading you won’t know how effective it could be or wasn’t if you don’t have a plan of action so if you’re sticking to the same thing time and time and time again at the end you can go back and go out it didn’t work why didn’t it work or it didn’t work great how can I make it better and I’ve told the story many times about years ago this scalping strategy I had on the Dow 10 ticks stop wasn’t working when I went in review dude I was like okay if I move me to 12 actually suddenly becomes a super profitable strategy for whatever reason that maybe don’t go into details about a story again now and go and check it out in all of the other videos guys but the point is sticking to it and food for the whole duration of the plan and saying right it didn’t work what was it in it’s finding a simple fix meant I can now move forward and implement that fix so I didn’t ever plan I’d have probably done it a few times but this is a rubbish strategy I’m not gonna use this strategy doesn’t work it’s wasted time losing money but because I had a plan of action I’m gonna stick to this and I stick to the rules and execute it and then even though it wasn’t working I went back and reviewed it and went right a slight little tweak a slight little adjustment we can move forward create a new plan etc and also you learn as you stick to the plan you start to jot notes down and go you know what this is a little bit too much time too time-consuming this checklist is too long because some people make a massive plan they go out and go reams of a4 and is full of mistakes I made I went crazily in depth and you don’t need to and sometimes you’ve got back and go listen a very brief checklist is fine and so it both works both ways is it too much did too much stuff to be doing for each trade you know why it’s sticking is its who restrictive don’t eat to loosen the boundaries a little bit so it works both ways as well so you know you’ve got the issue as profitability type of thing when you go to the end of Ingo right then I stick to the plan yes what are my adjustments all did I not stick to the plan aware that I not stick to the plan is it something I need to work on is something I can just drop because I’m just creating too much effort for myself don’t really need to check their daily example do I really a daily timeframe before every single day trade no I can probably check it once in the morning and I know where I am in the day so you might be adding too much stuff don’t really check all the other markets and news flow if I’m taking the third day trader they probably not you’re just wasting your time you get the idea and the final thing guys is the discipline aspect this to me is one of the most important things the first ones important to give you that sense of approach this as a professional the second or a little the final thing we’ve got here is the discipline if you can stick to doing what you say you’re gonna do for a decent period of time

that

builds a massive huge discipline muscle in you as a traitor are we all know how important the discipline is well know how important psychologies and mindset is this small action again costs nothing and the plan doesn’t have to be huge can be a small checklist it can be more broad or narrow you won but if you stick to that for 30 days or if you stick to it for most of the day so if you’re going to each day saying my objective today is to stick to the plan it’s not to make money it’s to stick to the plan and if you do that day after day after day you can control that you can’t control how much money you’re making from the market you can’t control the volatility in the market the range of the market the opportunities in the market you can’t control how you respond and if you do that consistently and persistently for a period of 30 days you are building the disciplined muscle and you know that is only a good thing when it comes to pulling the trigger when it comes to taking your stop-loss when it comes to FOMO when it comes to all those things that we’ve talked about so many times and I’m sure will address many times again in the future anything you can do in trading and in life that builds your discipline goes back to the cold shower thing remember series I’m still on the cold showers and one if you guys are let me know in the comments section broke anything little thing that you can do it says hey you know what I said I was gonna do it it’s uncomfortable I didn’t want to really do it but I did it I got it done I had just builds huge discipline for you so when you start trade it starts to increase your size you start to start swinging a bit more of a bigger line things start to get a little bit more sweaty when you’re in moves you can draw on that discipline and it can really work for you now in your improvement now getting from loser to profitability more profitable whatever situation you’re in and also in the future you have to see a lot of that profitability so guys training plan super super super important I hope you go out there and do one take care get your wrist managed by way

you

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