Page 3 - Module 3 - Roadmap_to_Success
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Module 3 – Roadmap to Success
Contents
the trading plan .............................................................................................................................. 5
why you should use a trading plan................................................................................................. 5
the advantages of a trading plan .................................................................................................... 5
the trading plan. as good as you make it ....................................................................................... 5
know your trading self .................................................................................................................... 6
know your mind .............................................................................................................................. 6
fit to trade ....................................................................................................................................... 6
income targets ................................................................................................................................ 7
setting your trading goals ............................................................................................................... 7
markets, instruments and timeframes .......................................................................................... 7
financial vehicles ............................................................................................................................. 7
selecting the right broker and trading platform ............................................................................ 8
before the market opens ................................................................................................................ 8
Be professional. Be prepared. ............................................................................................................. 8
Be informed. ....................................................................................................................................... 8
the most important thing. managing your money ......................................................................... 8
What is the difference between risk management and money management? ............................. 9
Your risk appetite ................................................................................................................................ 9
Overall market risk .............................................................................................................................. 9
Sector risk, broker risk and hardware risk .......................................................................................... 9
Strategy risk ........................................................................................................................................ 9
The likelihood of a successful trade .................................................................................................... 9
the trade setup ............................................................................................................................... 9
the risk-reward ratio .................................................................................................................... 10
your risk per trade ........................................................................................................................ 10
where to place your stop loss orders ........................................................................................... 10
knowing when to stop .................................................................................................................. 10
large drawdowns and profits ....................................................................................................... 11
your approaches to money management .................................................................................... 11
locking in profits ........................................................................................................................... 11
deciding your position size ........................................................................................................... 11
exit strategies ............................................................................................................................... 11
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