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    21 Questions You Should Answer in Your Trading Plan

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    Denis Simiyu
    The document outlines 21 crucial questions that should be answered in a trading plan to help ensure success. The questions cover areas like goals, strengths/weaknesses, risk management, resources, and accountability. Developing a clear plan that identifies objectives and addresses challenges is important, as it establishes expectations and guides decision making. Taking the time to thoroughly answer these questions can help traders avoid common pitfalls and give themselves the best chance of achieving their market goals.

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    21 Questions You Should Answer in Your Trading Plan

    Uploaded by

    Denis Simiyu
    168 views5 pages
    The document outlines 21 crucial questions that should be answered in a trading plan to help ensure success. The questions cover areas like goals, strengths/weaknesses, risk management, resources, and accountability. Developing a clear plan that identifies objectives and addresses challenges is important, as it establishes expectations and guides decision making. Taking the time to thoroughly answer these questions can help traders avoid common pitfalls and give themselves the best chance of achieving their market goals.

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    11. 21 Questions You Should Answer in Your Trading Plan

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    The document outlines 21 crucial questions that should be answered in a trading plan to help ensure success. The questions cover areas like goals, strengths/weaknesses, risk management, resources, and accountability. Developing a clear plan that identifies objectives and addresses challenges is important, as it establishes expectations and guides decision making. Taking the time to thoroughly answer these questions can help traders avoid common pitfalls and give themselves the best chance of achieving their market goals.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    168 views5 pages

    21 Questions You Should Answer in Your Trading Plan

    Uploaded by

    Denis Simiyu
    The document outlines 21 crucial questions that should be answered in a trading plan to help ensure success. The questions cover areas like goals, strengths/weaknesses, risk management, resources, and accountability. Developing a clear plan that identifies objectives and addresses challenges is important, as it establishes expectations and guides decision making. Taking the time to thoroughly answer these questions can help traders avoid common pitfalls and give themselves the best chance of achieving their market goals.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    of 5

    21 Questions You Should Answer In

    Your Trading Plan


    One of the leading causes for the failure of many businesses is their
    lack of planning.

    If you want to be successful in life and business, you need to have


    a plan for how to obtain that success.

    Trading is no different from any other business.

    It is important to have a written business plan for your trading just


    as you would for any other business.

    Like we mentioned in the previous lesson…

    “If you fail to plan, then you’ve already planned to fail.”


    In other words, those who fail to plan out their trading like a
    business are doomed to fail.

    Here are twenty-one crucial questions that you should have an


    answer to as part of your trading plan.

    1. What are your specific reasons for wanting to become a trader?

    2. What do you hope to gain from trading? 

    3. What are your biggest strengths?

    4. What are your biggest weaknesses?

    5. How do you plan to address your weaknesses and leverage your

    strengths?

    6.  What are the things that are going to separate you from the large

    majority of traders who fail? (Answering with “hard work” isn’t

    enough. Lots of hard-working traders still fail.)

    7. Will the things you mentioned above actually give you an edge in
    the markets so your trading outcomes generate a positive

    expectancy?

    8. What market or markets do you plan to trade and why?

    9. How much time can you devote to actively following the FX market?

    And the overall financial market?

    10. What is your trading style? Do you plan to scalp, day trade,

    swing trade, or position trade? 


    11. Do the trading style(s) you’ve chosen reflect the reality of the

    amount of time that you can devote to trading?

    12. At what times throughout the day (or week) are you going to

    spend actually trading, researching trades, and then learning about

    the market?

    13. What trading system(s) will you be using (your criteria for

    entering and exiting trades)?

    14. What is your risk management strategy?

    15. How will you know if your trading system or strategy stops

    working?

    16. After you’ve identified that your trading system or strategy has

    stopped working, what will you do to address it?

    17. What trading software and equipment you will use to trade and

    how much is it?


    18. Who will you use to access the markets? What broker(s) will

    you use?

    19. How much money do you plan to start to trade with? Is this

    money you can afford to lose without negatively affecting your

    current standard of living?

    20. Do you plan to add money to your account and if so where is

    that money going to come from?

    21. If you are profitable, do you plan to reinvest profits or withdraw

    some or all of them?


    If you’re really serious about trading, take time to ponder the
    questions above.

    Growth and success need direction and a sense of purpose.


    Which must first be identified and clearly stated. They won’t appear
    on their own.

    A clear roadmap forces accountability and responsibility, which


    sometimes may lead to a change in the plan (like when your trading
    system or strategy stops working). This is fine, but you won’t know
    that change is even needed unless you’ve established in clear
    terms, what is considered “working” and “not working”.
    Risks can be turned into opportunities, but first, you need to
    have identified what the risks are. If not, when they arrive as a
    crisis, you’ll be on your back foot, most likely panic, and make poor
    (and unprofitable) decisions.

    As you can see, there are many things to consider before hitting
    that buy or sell button in your trading platform. 

    Answering each question will not guarantee trading success, but


    NOT answering such questions will almost certainly guarantee
    failure.

    The choice is yours.

    Results are usually proportional to the quality of the planning.

    Don’t set yourself set up for failure. Set yourself up for success.

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