Trading Plan I – know yourself…

know yourself, know your purpose.

The key here is to understand my own psyche and know why I want to be a trader.

I want to be a trader because:

1. I am a risk taker and I love the excitement!
2. Trading is something that I haven’t really been doing well at it and is something that I really want to be good at it.
3. I want to achieve the total financial freedom (thru trading and/or thru the building of www.LuckySpeculator.com?) 

My objectives are:

• My main and primary objective in wanting to be a trader is to learn all the things I need to learn to become a good trader, write down the experience of trying to be a pro to build the content for www.LuckySpeculator.com.  Then share all the content with everyone who is interested to be a good trader.
• My second objective is to turn the $25K into a million.

[@more@]

These objectives are important to me because I want to make a name for the Lucky Speculator by building the content rich website, www.LuckySpeculator.com, on the subject of trading.  And I am sure I could make a good use of the one million as well, maybe buy another investment property in Columbia Maryland and rent it out to generate some residual income.  My family could use the extra income for the yearly vacation or it could also be used to contribute to my kids’ trust.

I believe I can achieve my objectives because:

1. I have the dedication needed.
2. I can change quickly to adapt the situation
3. And provide me with the tool of the knowledge; I know I can chart a course to success.

I am a discretionary trader my style is somewhat aggressive which makes me suited to medium-term position and swing trading.  I can and will control myself by adhering strictly to this trading plan which is detailed, specific, tested and profitable.    

My primary strength is following this plan very strictly and react/respond to various situations accordingly.  This contributes to ‘my edge’ and helps me towards my objectives.

My primary weakness is that I am too emotionally involved and not wanting to get out of bad trades quickly enough or wanting to recoup a loss quickly which, almost inevitably, results in increased losses.  The following aspect of the trading plan will help to control this weakness and prevent losses from spiraling out of control:

1. I have a pre-defined stop-loss.  If it hits, I cut my loss short and get out of the trade.
2. A pre-defined daily stop.  If it hits, I will stop trading for the day.
3. For this project: www.LuckySpeculator.com, a total allowed trading capital of $25K. 

I will only trade on days when I am rested, relaxed and not distracted.  I will be guided by my trading plan and I will adhere to it rigidly.  It will help to prevent me from making trades that are poorly conceived and executed; i.e. trades that are based on gut feeling and motivated by fear and/or greed.

I will not trade on days when I don’t feel like to for any reason. 

My financial target for the phase I of LuckySpeculator.com project is to achieve a return of 1 million dollars.