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Hi Paul
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> From: Paul Cote <cote@xxxxxxxx>
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Subject: Trading Plan
> Date: Thursday, January 08, 1998 1:04 PM
>
> I would like feedback from people about what a trading plan is,
> is it a master plan?
Yes in the sense that it is the standard by which you determine
whether or not you take a trade.
Trading is a continuous event - by that I mean a trade begins
when the trader initiates a trade and ends when he liquidates
a position. Accordingly it is of outmost importance that these
events are clearly defined.
> is it a plan for each trade?
Not sure what this means.
> when can you change it?
I recommend you trade a plan for at least 30 trades where there
has been flawless execution. 30 is a number which statisticians say
is the minimum number needed to produce meaningful data.
There are two reasons why a plan may not produce a profit:
a the plan is flawed or
b the trader fails to execute flawlessly.
As a trader you need to know whether it is you or the plan
that needs amending if trading results are not up to
expectation. 30 trades flawlessly executed will tell you if your
plan needs amendment.
> can you change it during a trade?
No see above.
regards
ray
R Barros
101/25 Market Street
Sydney NSW 2000
Australia
e-mail: ramon@xxxxxxxxx
tel: 61 2 92673470
fax: 61 2 92673478
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