Create Your Profitable Trading Plan in 5 Steps

Álvaro Cid, Lidia F.

• Editorial: Álvaro Cid
• Año: 2020
• ISBN:
  9781071527078
• Categoría: Business
• Categoría: Finanza

Many people would like to be able to invest in the stock market and earn money to the point of living completely from it. But they have a small problem with it: they don't know how to do it. Some of these people have even begun to invest in the stock market with poor results. This is the point at which most leave and consider that investing is very risky for everyone. Sadly, most will not achieve profitability in the market they expected. This guide will help you create your own trading method or plan. I have designed the steps after years of trial and error in the market and in my investment methodology, in this way you can achieve the positive results you want in the market if you follow these simple steps. You can create a Trading plan with this method if: You are an experienced trader who knows rules of entry and exit of the market and wanted to include it in a solid and profitable method. You are a novice trader who is starting and who needs to know the right steps to take from the first moment. You have the desire to make money in the market professionally.

The method

1. Set Objectives

At this stage the main thing is to be honest with ourselves and with the knowledge we have. With that in mind, we will set the objectives or goals we want to achieve.

* Personal objectives

First of all, we must be clear about what we want in our life away from the economy and the material. We have to establish what we want as people on the physical, professional, spiritual, mental and family level.

Once these requirements are established, we can move towards what we need to achieve them, from the material or economic point of view.

For these types of goals, it is best to sit an hour in the morning as soon as you get up and the sooner the better, to try silently to hear our deepest intentions. I don't want it to be a scientific method, nor closed. You must let your imagination, your desires flow and not put brakes on it. Write your goals now to one year, three years, 10 years and 50 years.

These first steps may seem irrelevant, but believe me it is the most important step you should take to raise awareness with your own plan. We must always start with the reason.

An example would be:

"At one year I want to be respected in my work, be thin, learn the theory of financial options and put it into practice for a few months and meditate for at least 20 minutes a day.

At three years I want to start being a reference in my work, have a daily exercise routine, be a good trader in financial options and regularly meditate more than an hour.

At 10 years I want to be a national reference in my work, to be a black belt in some martial art, to live very comfortably only with a few mouse clicks a week and to make enriching trips.

At 50 years I want to have changed the lives of many people, be healthy and strong and be remembered as a person who has left a mark. "

One piece of advice I give you is not to close the doors yourself. You can change and you will change it often as time goes by, but it is important to listen to yourself in the present based on what you really want from the future today.

* Profitability objectives

At this point, we can already make our profitability goals more scientifically.

To correctly perform this section we must first understand how to set the objectives. The objectives according to the Smart technique should be:

Specific: The objectives you set should be as objective and concrete as you can.

Measurable: must be able to be measured.

Achievable: if you cannot reach them, they are not objective.

Realistic: on the other hand they must be realistic and challenging.

Established in time: if you do not have an end date, they are only dreams and not objectives.

Once this point is clarified, he thinks that most investors earn 30 or 40% annually and are those who know what they do. Others get up to 25% monthly, but being consistent in that figure can be considered barbaric and a milestone.

Knowing these general figures and your current knowledge of the market and your experience, place your weekly, monthly and annual profitability goals.

An example of this part would be:

"A monthly return of 5%, which would be an annual return of 60%." With this profitability I would be more than happy, it also adapts to my work methodology that tries not to invest a lot of time in the investment.

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