All language subtitles for 7. Creating Your Trading Plan (Step X Step)

So let's talk more about how to create your own training plan, your your overall plan, that's your

strategy, that's going to be your guide, that's going to help you when it's time to execute.

And they're actually not too hard to build, actually pretty easy to build.

As far as, you know, the core components, the core five steps that you would use to build out your

training plan will walk through that here.

And once your training plan is in place, then you're set.

Right.

And then you can follow that framework and then you can adjust or build on it.

But you've got your training framework, set your training plants that, and then you just keep improving

as you become more experienced and as you want to keep changing, adjusting to keep improving your training

results.

So let's show you the five steps and how to basically create your own training plan.

Step one, as far as the steps, kind of well, this is your first.

You're going to do this.

You're going to determine if a trend exists, right?

That's indicators come in.

You know, it's obvious a trend following indicators fail if there's no trend.

Right.

I mean, the idea if you're trying to do is an indicator that's going to try to show a trend.

And if there's a trend, we can kind of predict what's going to happen going up or down on that trend.

And if a trend and there's no trend, the indicators are not going to be successful.

Right.

So, you know, the key of that whole trend is your friend is so important.

So keep that there.

When you're looking at these indicators, you're looking for these trends as part of a five step plan.

And there were to have a rule for opening a position, basically your buying position.

What are you going to do?

What are the criteria that be what our primary secondary indicators telling you, whatever that says,

I'm going to open a position when this happens, for example, it might be like I will buy one.

The 20 day simple moving average crosses the 200 day simple moving average.

And I confirm that with the most moving average convergence and divergence.

Right.

So that's the that's the rule.

Right.

I have to meet these things to in order to buy.

Right.

So that's part of my plan.

I'm going to look at indicators.

We'll look at trends.

And then number two, I'm going to buy or open a position that's the key part.

What am I going to open or buy once this once once these indicators kind of line up?

And this is an example of that.

Number three, I'm going to manage you're going to manage your money at risk by scaling up or down and

how much you scale down or even at all.

But that's a great way to build into an overall trading plan.

Now it's looking at more managing your money versus, let's say, a trading indicator.

And so you'll increase your funds in a winning trades and withdraw from poorer performance, the idea

of scaling money up and down based on a trade.

So, for example, we talking with an example or two.

If you put five hundred dollars dedicated for each trade and then you have two hundred dollars, you're

going to put in number one.

And number two are meant as far as primary and secondary indicators.

And then you'll keep adding to that trade for profitability as a numbers three, four and five are met.

By the same token, you know, once it's certainly reaches the, you know, all five or you might not

get to all five, you're going to sell right away once you get a sell indicator.

Right.

That's the ideas.

You sell everything right away when there's a sell indicator.

But as far as adjusting how much money you have at risk by scaling scaling that up or down, you can

kind of, you know, take a little bit easier or adjust your how much you want to put at risk.

If you say, OK, if I see my number one and number two, I'm going to put all in, that's fine.

To just understand, you're taking on more trading risk than if you spread that out a little bit, too,

to neither way's right or wrong.

Just it's a little bit more conservative and a little bit more risk averse to spread that that trading

money by scaling that money up or down for closing a position we have.

You know, the second one is establishing when to buy.

Well, it's also important to know when to sell.

Right.

And that's very important because that's going to help control your losses.

You want to control your losses and you want to lock in profits and control your losses and have increased

profitability.

Of course, now after traders are not buy and hold forever type investors.

Right.

They're not going to buy something and then hold it for five years or 10 years or forever.

You know, they're looking at targets and stops when when they want to lock in those profits.

And that's when we look about some other things around trading around targets and stops and how to set

that from an order standpoint.

But the idea is that you're looking at a target.

You're going to want your security try to get to it may not get all the way there, but that's the target

you're looking at.

And once it hits that you're going to sell to lock in that profit.

Another thing is using stops where you might go up a little bit, but it might start going down.

There's a stop, you know, limit or stop where it's a trading mechanism to help you automatically,

you know, basically sell and protect your downside.

So, for example, you might say that you're as part of your plan that you're going to sell everything

when the price crosses below the twenty day moving average.

Once that happens, you're selling, you're not debating, you're not having a whole big discussion

about.

It's like, no, this is the rule.

This is part of my trading plan.

This is my rule for closing a position.

And of course, you can have whatever indicator and rules you want.

You'll be developing that on your own, of course.

But the fourth part of this is establishing a rule for closing a position.

And then lastly, number five is doing it again.

Right.

Doing it over and over again in.

Might be with a new security that you're now looking at for the same types of indicators, situations

of primary, secondary, whatever it might be, or sometimes it's a reentry into the same security as

the price waxes and wanes over a period of time, you might have a small walk, smaller watch list of

securities that you really like to trade in.

And you're always watching those, of course.

And then you're, you know, doing the same five steps as far as your trading plan.

So, for example, a swing trader, you made trades several times in and out on a security with a longer

overall predominant trend.

That's the whole idea that swinging prices swinging up and down.

But they're watching this overall trend, but they're kind of getting in and out more frequently than

somebody who might ride that trend almost the whole way and then get out all at once.

Either way, works is to measure how frequent are trading and trading style, for example, or for example,

you want to walk up the Bollinger band and then once it's off the band, you're then you're then your

cell and then you get back again when that security gets back on a band walking up.

So you're you're really using that maybe as a primary indicator, something else confirming it.

So when it's on the band, you're walking up the band looking at less than again, if this sounds a

little unfamiliar.

But look at the listen.

If you need to be walking to the band, you're you're going to keep riding it once it's off the band

to sell its back on, you're buying again.

Right.

So you're kind of doing that with maybe a smaller universe of securities.

Either way, how you do that, you're trying to set up that whole trading plan of doing it again and

how many securities you might be looking at.

So if you think about it, you know, kind of the steps around there, you have your tools, your indicators,

and you have these rules.

You have these ideas of how you would use all of that.

And then the five steps is determining if the trend exists.

That's your indicator is going to help you with that.

What's your rule for opening a position?

That's where your discipline is going to help you with that and establishing that all ahead of time.

Managing your money is an important part.

You can manage that risk by scaling your money.

You know, as far as how much you want to put in at a time, establish a rule for certainly for closing

the position.

So you need to know when to buy.

But a number for you need to know how to sell and then doing it again and how you want to approach that.

And again, that discipline will serve you well.

If you follow your plan here as you deviate from any of these five points in the plan, then it gets

a little bit more less efficient and maybe less, you know, less profits for you.

So follow these guidelines and then you can build on this framework as far as creating your own type

of a plan.

And then that's kind of the last thought there is.

Keep that framework.

But dafter rules as you evolve because you will evolve as a trader, especially if you're a bit newer

to this and you took the course because you're a little bit newer.

Miller, brand new to this, you will evolve, you know.

So, for example, as you become more as you do more trades, you're going to become more comfortable

and you going to become more confident, which means your risk profile is going to change.

You might have started, let's say, trading and be a little bit nervous and all.

And that's perfectly OK.

Everybody is.

But as you do more trades, you see some success.

You're going to take on maybe a little bit more risk, possibly because you're more confident in your

more experience and more and you're better at just trading in general.

And the amount of time that is available for you to trade could change to maybe you've got a full time

job.

It's just crazy as busy.

Everything's just crazy.

Street, just trade a little bit.

But maybe now you've reached a point where you have more time freed up and you're more confident you

want to trade a little bit more.

Well, then you can adjust your freight, your your framework for how you might want to be a more active

trader than some who's a little less active trader.

The other one's right or wrong.

It's just that you can adjust your framework as these things happen, particularly with risk profile.

You might be adjusting your framework to be matching up with your risk a little bit more.

Again, you take a little bit more risk.

The idea that you're going to get a little more reward as part of that to some more risk, more reward.

And so that's where that confidence, knowledge as you keep going is going to serve you well.

And I hope this course has helped you with that, to give you that confidence, that framework to then,

you know, build your own success.

That's the whole idea here of helping you be successful.