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What Is Day Trading How To Get It Started - PART 2

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57 views8 pages

What Is Day Trading How To Get It Started - PART 2

Uploaded by

cherpwp
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Investing 101

HOW TO MAKE YOUR


TRADING PORTFOLIO A
PROFITABLE ONE BY
TRADING
PART -2
CREATING A
TRADING PLAN

4. Define your Goals


Use the acronym SMART (specific, measurable,
achievable, relevant, and time-bound) for effective
trading objectives.

For example, in the next year, I hope to enhance the


value of my entire portfolio by 15%.

This is SMART because the numbers are specific,


you can measure your success, it's realistically
achievable, it’s related to trading, and it has a
deadline.
CREATING A
TRADING PLAN

5. What’s your Trading Style?


Your personality, risk tolerance, and
trading time commitment should all be
factors in determining your trading style.
The following pages are 4 types of
trading styles.
CREATING A
TRADING PLAN

6. Choose a Risk-Reward Ratio


Before trading, determine your risk
tolerance for each trade and overall
strategy, as all investments carry some risk.
Beginners often start small. Success
depends on managing risk and reward, with
a 1:3 ratio or higher—e.g., risking $100 for a
$400 gain equals a 1:4 ratio.
CREATING A
TRADING PLAN

7. Assess your Market Knowledge


Your trading strategy will vary based on the
market you choose, as a forex plan differs
from a stock plan.
Assess your knowledge of asset classes,
then study your chosen market's hours,
volatility, and potential gains or losses per
price movement.
If these factors don’t align with your
preferences, consider a different market.
CREATING A
TRADING PLAN

8. Decide How Much Capital you


Have for Trading
Determine how much you can afford to
invest in trading, ensuring you never risk
more than you can afford to lose. Trading is
risky, and losses can exceed your capital.
Calculate the maximum possible loss for
each trade beforehand, and practise on a
demo account until you're financially ready
to start.
CREATING A
TRADING PLAN

9. Make a Trading Diary


A trading diary is essential alongside your
trading plan. Use it to track your trades,
noting what works and what doesn’t.
Record technical details like entry and exit
points, along with your reasoning,
emotions, and any deviations from your
plan. Be as detailed as possible to improve
your strategy.
JOIN OUR
COMMUNITY!

Curious about trading strategies and finding the best


fit for you? Join our upcoming Spiking Wealth
Masterclass! Our online network empowers you to
catch market Spikes with faith, hope, and love.
Through online courses, live trading, and winning
trades, we help you connect the dots and maximise
your time. Start your Spiking Wealth Journey for free
today!

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