How to build a trading plan
How do you build a trading plan, when you can't find an indicator, combination of indicators, or system that seems to work? I am having an awful time putting this together. At this point, i have about an 80% failure rate. That's after three years of trying to learn the market.
Sounds like your starting at the wrong place, your looking for the little green arrows. You must start at the begining, what are your market tenents. They say take a system and make it yours, but how can you do that if you have not determine what will make it yours. If the system doesnot match your underlying beleif structure your wasting your time.
Define what you believe of the market. If you believe that the markets (price) is not predictable at least on a consistance basis then stay away from all that predict. If you donot believe that the market follows any matimatical structure then stay away from E Waves fibs pivot points and the such. If you think that chart pattens are too subjective and do not work on a consistant basis then they are wrong for you.
You will never make a go of something that you do not whole hartly believe in. Therefore, if you beleive that the markets are not beatable or system trading is not posible then they will not work for you.
You must find your place were you fit in.
Keit
The cowboy pretty much nailed it. I would add exploring the "self" as a key component to profitable trading. Know your psychology. Are you compulsive? -then you should be scalping for quick 5 to 10 pip profits. Are you more of a patient man? - then try swing trading. These questions need a serious look, because otherwise you're at a dead-end... as it appears to be the case now.
The cowboy pretty much nailed it. I would add exploring the "self" as a key component to profitable trading. Know your psychology. Are you compulsive? -then you should be scalping for quick 5 to 10 pip profits. Are you more of a patient man? - then try swing trading. These questions need a serious look, because otherwise you're at a dead-end... as it appears to be the case now.
You and Cowboy both nailed it.. I've been experimenting for about year with different methods and I constructed one a couple days ago that perfectly fits me and it's working for me.. and it wasn't 'til I approached trading from a psychological level that I really started making progress..
How do you build a trading plan, when you can't find an indicator, combination of indicators, or system that seems to work? I am having an awful time putting this together. At this point, i have about an 80% failure rate. That's after three years of trying to learn the market.
Hi,
Maybe this one? Ten Steps to Building a Winning Trading Plan
Trading plan is a basic of trader knowledge
tq for the link
A must read for all no matter where they are in their trading career.
The cowboy pretty much nailed it. I would add exploring the "self" as a key component to profitable trading. Know your psychology. Are you compulsive? -then you should be scalping for quick 5 to 10 pip profits. Are you more of a patient man? - then try swing trading. These questions need a serious look, because otherwise you're at a dead-end... as it appears to be the case now.
I am not much into the psychological side of things as that never adds up for me, two and two rairly add up to four in that sicence. Why do people do what they do? How can one answer that, when one cant answer why he does things he does?
Minds is more of a True or False thing. As an example; It is said that the markets trend 30 percent of the time. Most will answer true. Why does one beleive that? Because 30 is what has been said and repeated so many times that its a standard responds from people, but do they truly beleive that? I thing most have not given it any consideration at all.
My answer is False, I beleive that the markets are trending almost ALL the time, that is in one time SCOPE or another. Its just that it may not be within your vission of trading or trade scope. If one doesnot beleive this then I say open up all the charts of one pair that is all time periods avaiable and have a look, somewere you will find the trend, as some will be up some are down some are ranging. Price is always on the move, and one can find a trend somwere in price but it may not be in your trade scope.
If you are a daytrader using the 15M charts and price is not trending, it doesnot mean that others are not making profitable trend trades within their trading scope.
This forum was started as a Triple Screen Display, that is what 'TSD' in the name stands for. Question, when trading it is said that you must look at the time period above your trade time (scope) to see where the trend is and trade in that direction only. If you trading of the 15M chart they say check the 1H chart to see the trend and trade in the direction of the trend. I beleive that is wrong as your no longer trading the 15M chart, your trading the price action of the 1H chart and using the 15M a timing tool. If one understands that all trends starts at the tick level and process up the line, then looking at the time levels below will alert you to a possible continuation or a change of up coming action. Any thing above your scope is done and past. Its the trend wave moving up the time scale scope.
Here I use the word scope in stead of time frame, as both have different meanings. One can be a daytrader scope and still have different trade time frame (average trede lenght) as in short, intermediate or long term within the daytrading scope. How?
These statments may draw a lot of disagreement and I donot have the time to give either topic justist. You will have to give this a lot of though on your own. What you understand and beleive will determine how you go about trading and the tools which you will use.
Keit
This forum was started as a Triple Screen Display, that is what 'TSD' in the name stands for.
KeitGlad you remember me this 
Much thanks to all
Thanks to all who responded. I think i realize that i need to start all over at square one. A few things i do know about my trading, now there are other things i need to put in place. In all this time, there has been no one that could give me good guidance in setting up a trade plan. Cowboy, you make more sense to me than anything else. Maybe our minds are similar. There is no set plan that can be the same for all, that is fact. I need to figure out what indicators i like, and what kind of market they work in. ny way, thanks again for your answers.
Thanks to all who responded. I think i realize that i need to start all over at square one. A few things i do know about my trading, now there are other things i need to put in place. In all this time, there has been no one that could give me good guidance in setting up a trade plan. Cowboy, you make more sense to me than anything else. Maybe our minds are similar. There is no set plan that can be the same for all, that is fact. I need to figure out what indicators i like, and what kind of market they work in. ny way, thanks again for your answers.
Pipresponse
You just spent 3 years. In that amount of time you should of aquired the general knowedge of trading. The next step should be easier as, all you have to do is through out what you dont beleive in. Any thing you keep however must have a logical market reasoning why it should be kept.
Good luck, Hope to continue to see you arround TSD, if you what to talk about trading feel free to PM me.
Keit
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How do you build a trading plan, when you can't find an indicator, combination of indicators, or system that seems to work? I am having an awful time putting this together. At this point, i have about an 80% failure rate. That's after three years of trying to learn the market.