All language subtitles for 8. Creating Your Trading Plan Combining Indicators With Your Risk Profile

Couple last thoughts around, you know, your trading plan and all that in thinking about technical

traders, technical people are trading active traders and using technical analysis and maybe like traditional

long term investors, like buy and hold type investors.

If you think about a technical trader, you know, in their plan, their plan has like we walk through

these kind of five steps.

But the plan has rules from entry to exit.

Right.

When you're going to buy something, you've got rules that help you with that and indicators you're

going to use.

And when you exit or sell, you've got rules and things that are going to conditions that need to be

met to do that as well.

So you have a definite plan around entry and exit and you'll use things like stop losses and targeting

profit levels and all that.

And so you're coupling that loss reduction and avoidance with profit.

Right.

So you're actively trying to manage through that and using that in a real technical way in a real dispassionate,

unemotional way, certainly.

And you're looking at what the charts and what the indicators tell you.

And then you're reacting.

Coralline, we think about a lot of traditional, quote unquote, traditional Venters investors.

How many might have no plan, but hopefully have a plan or they may have a rule for entry.

Right.

So they might enter into something based on something.

Maybe it's some type of fundamental, whether it's a price to earnings or a value type of of of ratio

or profit to growth, earnings to growth peg ratios.

There's different types of things you could use as the traditional investor for entry.

But there's no specific plan for exit.

There's and it's really more of an indefinite period for exit when things start changing around maybe

that particular security or in the wider world or wider market around there.

So a technical trader is looking at entry and exit and they have a plan that covers everything additional

there is looking at entry.

And then they might even let that ride further, like a buy and hold investor might let that ride for

a very long time, years or more, maybe forever.

And the thing with that is, if executed correctly, either one can be successful, either one can be

successful.

And so you want to think about and you can have a combination.

You might have your core part of your portfolio words, mutual funds and exchange traded funds, for

example, that are core.

And you buy them and you hold them and let them go for for a long period of time.

And then you might have another prior period where you're using that technical training to get a better

return on top of that buy and hold by having those entry and exit points as a technical analysis trader.

And that can take many forms depending on your time frame, from day trading to more active trading

to swing trading to whatever it might be.

So that's kind of the difference between those and there.

And as far as some of those final thoughts.

And lastly, as we saw earlier, you're trading rules, which is all part of your trading plan.

And the overall think of this is really going to come around the indicators you use, coupling with

the risk profile that you have, how much time you have available for trading and putting this all together

as far as understanding how you're going to execute and look at as far as what's enjoyable for you in

terms of your overall trading plan and the plan you're going to follow.

So, again, keep that in back of the mind.

The indicators that you've learned that you want to use, understanding a little bit more about your

own risk starting slowly is perfectly good.

Certainly using things like paper trading, back testing to get you comfortable.

Those are good ways to get going.

And then as you keep developing the up from there, as you become more experienced and more successful.