Ask Colin

In the article Trend Trader you state that the lack of a plan is a major reason why traders/investors fail. I have read this elsewhere and have heard it a sufficient number of times to believe it must be true. My problem is to work out what should go into a plan. Are there any examples of plans in any publications that may give me a clue as to what I should be putting into a plan? If I saw some sample plans I am sure it would help me understand the things I should be taking account. I have been searching for a couple of months now without success. Any light you can throw on this matter will be greatly appreciated.

You are correct that lack of a trading plan is a major reason why traders fail. I advocated for many years that traders develop a trading plan before they start trading and that the plan must suit them, rather than come out of a book etc. This is because we all bring different beliefs, attitudes, personalities, needs and resources to the markets.

Many people then came to me and said, just as you have done, that they do not know where to start. To help them, I have started to teach my trading plan in my seminars, camps and now on videotape, as a model that traders may take and adapt to their own needs. Details of my teaching program are on my web site, as is how to buy the videotape version.

I also recommend Garnett Znidaric's seminars, though he teaches only the need for a plan and some of the aspects that need to go into it, rather than show you a model. See www.tradingplan.com.au.

There is more on my web site on this general subject.

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