Advice from veteran trader about developing trading plan

One of the new trader asked how to develop a trading plan. One of the veteran trader who has made millions trading and is Stockbee member gave him the following advice:

I do not have a link or resource that I can point you towards to develop a trading plan, but here are a few thoughts.

If you are struggling (losing money) and trading without a plan (throwing darts). STOP! Doing the same thing and expecting different results is ridiculous

Eliminate the noise.

Take this site and only read Pradeep's post. Take his teachings, study them and from them begin to develop your own plan. Paper trade it or buy 10-share positions to develop confidence. Learn and adjust.

Work harder.

Honestly assess your commitment to the process of becoming a successful trader. Most of what happens during the trading hours is the execution and the realization of the work you have put into reviewing hundreds of charts before and after market hours, looking for that one or two gems where you can commit your capital

Do the exercises

Pradeep has outlined and/or suggested. Trading really is hard work, but can be VERY rewarding once mastered

Make a commitment to never taking anyone else's trade.

In the years I have been here never once have I taken a trade from Pradeep or another member. If a symbol is posted and you want to evaluate it according to your own analysis, do so. Unless you are day trading, successful trading rarely requires a snap decision without thoughtful analysis

Learn to use alerts.

A simple trading plan is to buy a stock as it crosses up through its 50-day moving average. Go through your entire universe of stocks that you want to trade and set up an alert where you would like to enter. This will help you get better entries.

Draw trend lines on your stock charts.

Up trending stocks tend to move in zig-zag patterns creating a channel. If you get an alert when a stock hits the bottom of your channel, buy it and set your stop to close the position if it closes outside the bottom of the channel. Take profits when it gets back to the top of the channel.

Go into this adventure of trading knowing that it is you, and only you who will ultimately determine if you are going to be successful or not.

Make the commitment, avoid others opinion, quickly get out of positions when they go against you, trade small to build confidence and keep a journal documenting your trades, your thoughts about the current markets, why some trades worked and others didn't.

From all this your trading plan will "magically" appear over time.

Methods and philosophy

Best site to learn to trade

If you are serious about your trading and want to build an enduring edge, the Stockbee Member site might help you.

Members tell me they have tried a lot of things before coming to my site, and it has offered them the most extensive and detailed methods to swing and position trade. Members range from very experienced traders to novices.

No advertising, no hard marketing, no promotions, no free offers, no affiliate marketing, no incentive to other bloggers to promote the site, no constant tweets self-promoting the site, and no tall claims. Every member comes through word-of-mouth recommendations from existing members.

As a member, you will learn the basics of swing trading, momentum investing, growth investing, and risk management. You will learn about Stockbee Momentum Burst breakouts, Stockbee Trend Intensity Breakouts, Stockbee Episodic Pivots Breakouts, Stockbee Lemonade Strategy for 401k, and many other member-shared methods.

You will learn how to set up your own scans, how to select the right kind of stocks, how to set up stops, when to enter, when to exit, how much to risk, how to track your trades, and all other details about trading.

You will learn about developing your own methods and not relying on others for trade ideas. Develop your own edge. Once you develop your own method, you will have a lifelong profitable method.

The site gives you an opportunity to interact with some of the most successful traders and learn from them about their trading methods. It is a vibrant community with members from different backgrounds and experiences willing to help each other. Members have shared their methods, scans, software, backtests, and market insights.

Every day, the emphasis is on continuous learning and upgrading of market knowledge and setup knowledge. The members range from hedge fund employees, financial advisers, active swing traders, investors, and new traders.

You will see that many trading bloggers have been using my market timing methods, scans, and chart templates. They have developed their own methods based on my methods.

Almost every member comes through a recommendation of some of the leading trading bloggers and trading sites. 80% or more members continue to be members for more than 3 years. Most tell me that they stay on because every day they learn so much from the members' site.

If you are looking to develop your own trading strategy, the membership site might be for you. You have to be willing to put in the effort to build your own method. There are no silver bullets offered on the members' site. Every method, every scan, every nuance is detailed, and all possible help is offered to design your own method.

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