SMART Trading Plan

After reading a few threads on the racing traders forum were people were discussing SMART trading plans. I have decided to construct one myself. I have decieded to do this in order to try and keep focussed on my goals and not let greed get the better of me. Here is my SMART trading plan.

SMART Trading Plan

SPECIFIC:- To make £20000 by the end of 2012

MEASURABLE:- I will keep a regular trading spreadsheet recording my progress on a daily basis.

ATTAINABLE:- I will trade approximately 20 days per month and will aim to make 3% of my bank every day I trade. Once I have achieved my target for the day, I will cease trading in order to prevent over trading. I cannot trade everyday as I work full time and some days there will be no sports trading available, particularly with respect to football, which only runs for 8 months of the year. Therefore, I will, on average aim to make 1.5% of my bank everyday. This will take into account that some days I will make more than 3% of my bank and other days I will make less than 3% of my bank. Also some days I will lose money.

REALISITIC:- Realistically I will have some bad days. I will not be successful on every trade, every day. Therefore, I will set a stop loss for any given trade of 3% of my bank. Also, on any given day I will have a loss limit of 10% of my bank. Once I reached my limit I will cease trading for the day. I hope this will minimise the worse aspect of trading, which is chasing losses. Also by having a regimented routine, I will hope to detach all emotion from trading.

TARGET:- To make £20000 by the end of 2012.

I will see how it goes and may have to make changes to it along the way, I will see.

Happy Trading