Page 30 - Trading #101 Course – Part THREE: SETTING UP YOUR BUSINESS – www.traderscoach.com

TRADING #101 COURSE – PART THREE: SETTING UP YOUR BUSINESS – WWW.TRADERSCOACH.COM

With this plan, you’ll be able to focus on getting profitable. There is nothing worse than
trading errors because of poor concentration. You may be templated to blame the
“distractor”. But, if you don’t put a plan in place to avoid distractions, you’ve no one to
blame but yourself when trading errors occur.

Enter a “Contract for Success”

Complete your “Contract for Success” today. See Figure 16.1. It is important for you to
make the inner commitment to be successful. By entering into this written contract, you
are physically and emotionally encouraging yourself to attain trading success. At the
same time, you are promising yourself that you will use planning and risk control in your
trading and investing; you will set stops and adhere to these stops, and you will do the
work necessary to become successful.

Guidelines for Completing Your “Contract for Success”:

1.) Through testing and “Paper Trading” determine what works best for you and
outline your “Trading & Investing Rules” one by one, always focus on profitability.
2.) What time of day and what days of the week are best for your performance?
3.) Are there any physical requirements necessary for your success – such as
enough sleep, eating right, discipline, etc.?
4.) What privacy requirements do you need to eliminate and reduce distractions –
such as no phone calls, no television, no visits from family and friends, etc.?
5.) Specify your personal money management formula (over and above the need for
stop-loss exits).
6.) Specify your technical specifics – such as what style of trading and investing you
will be doing, what market time frame(s) you will be using, which financial market
(s) you want to work on, etc.
7.) Write down any personal “Trading & Investing Rules” that you may have difficulty
in adhering to (especially the ones that you know will make you more profitable).
8.) Update your contract once a year, or whenever you adapt your rules and you find
it improves profitability.
9.) Find a “Trading & Investing Buddy”, someone that can also sign-off on your
contract and keep you “Honest”. This would be someone you talk to often, not
necessarily a trader or financial expert, but someone that knows you and can
help keep you “On-Track”, such as your wife or husband, friend, a “Trading
Coach”, etc. By keeping your buddy in the loop, it will enable you to maintain
accountability for your actions and your results.
10.) After completing your “Contract for Success” be sure to MAIL or EMAIL it
to the TradersCoach.com® office. This will help your trading psychology since
you will have made a written commitment to your “Trading & Investing Rules” and
your will have a support team to help you implement these rules successfully.

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