Trading Plan Template

Share Wealth Systems Trading Plan Template Page 1 of 18

Share Wealth Systems Education Centre

Trading Plan Template

Because the information in this Trading Plan template is general in nature, it may not be relevant to individual circumstances. Before making any investment or financial planning decisions, you should

consult a professional adviser who can help you decide whether your decision is appropriate for you.

Share Wealth Systems Pty Ltd (SWS) believes the information provided in this template is correct. However, SWS and its directors, employees and agents are not liable for any loss or damage incurred by any person as a result of any error in any information, opinion or recommendation (whether due to

the negligence of SWS, its directors, employees and agents, or otherwise). This does not limit any rights a person has under the Trade Practices Act.

Nothing in this template is, or should be taken as, an offer, invitation or recommendation to buy or sell

any investment.

Formulating a plan for managing money in the market is akin to writing a business plan. It is a

MUST. You are encouraged to immediately write your very own Trading Plan that will outline

how you will approach the market.

For those that already have a Plan, pull it out of the bottom draw and measure how

successful you have been in adhering to it. All too often we file away our plans and only revisit

them at times when someone writing a blog reminds us to! Our Plan should be most needed

when we are most challenged. If it doesn’t help you make decisions when times are tough

then it is simply not complete. Make sure you complete it!

To ensure that you stay the course – keep your Plan on your trading desk.


PORTFOLIO “ABC” TRADING PLAN

TABLE OF CONTENTS 1. Mission Statement .......................................................................................................... 3 2. Trading and Investment Goals & Objectives ................................................................... 4

Return Objectives .............................................................................................................. 4 Risk Objectives .................................................................................................................. 5 Skills goals......................................................................................................................... 5 Mindset goals .................................................................................................................... 6

3. Trading System .............................................................................................................. 6 Strategy 1 - SPA3 Methodology ......................................................................................... 7

SPA3 Parameters ........................................................................................................... 7 Entry Policy .................................................................................................................... 7 Trade Opportunity .......................................................................................................... 7 Exit Policy ...................................................................................................................... 8

Strategy 2 – An Other methodology ................................................................................... 8 Entry Policy .................................................................................................................... 8 Trade Opportunity .......................................................................................................... 8 Exit Policy ...................................................................................................................... 8

4. Risk Management .......................................................................................................... 9 Types of Risk ................................................................................................................. 9

Risk Profiles for Strategy 1 – SPA3 Methodology ............................................................... 9 Risk Profile 1 ................................................................................................................ 10 Risk Profile 2 ................................................................................................................ 11 Market Risk .................................................................................................................. 11 Example of Market Risk for Risk Profile 1 ..................................................................... 11 Sector Risk ................................................................................................................... 12 Liquidity Risk ................................................................................................................ 12 Volatility Risk ................................................................................................................ 12

Risk Profiles for Strategy 2 – AN Other Methodology ........................................................ 12 Types of Risk ............................................................................................................... 13

5. Money Management ..................................................................................................... 13 Capital Allocation – Strategy 1 SPA3 Methdology ............................................................. 14

Capital Allocation - Risk % ............................................................................................ 14 Maximum brokerage rule .............................................................................................. 14 Insufficient Capital for the next Trade ............................................................................ 15 Takeovers .................................................................................................................... 15 Pyramiding Rules ......................................................................................................... 15 “Lighten Once” rule ....................................................................................................... 15

Capital Allocation – Strategy 2 AN Other Methdology ....................................................... 15 Capital Allocation - Risk % ............................................................................................ 15 Maximum brokerage rule .............................................................................................. 16 Insufficient Capital for the next Trade ............................................................................ 16 Takeovers .................................................................................................................... 16 Pyramiding Rules ......................................................................................................... 16

6. Other trading rules ........................................................................................................ 16 Other Discipline Management Rules are: ...................................................................... 16 Placing Orders in the Market ........................................................................................ 17 Daily Process – Strategy 1 SPA3 Methodology ............................................................. 17 Daily Process – Strategy 2 AN Other Methodology ....................................................... 18

7. Performance Measurement .......................................................................................... 18


“The primary job of investors is to make sure their money is secure.

The next step is to convert that money into cash flow or capital gains”

1. MISSION STATEMENT This is where any good journey starts and it deals with the question, WHY? This is about PURPOSE. This purpose will create desire and drive to stay on the journey. Why are you investing in the market? [EExxaammpplleess]]:: • To manage my self managed super fund initially for portfolio growth and then for income

in my later years.

• Grow a capital base for an extended family holiday or a house extension.

• To grow and develop as a person and learn new skills that will help my family’s financial wellbeing.

• Are you doing this for your family or for a worthy 3rd party cause?

• To achieve financial freedom so that you can spend your time on a cause?

• Your retirement?

• Your children’s education?

• Are you doing this to achieve skills for a career change?

• Is it for capital growth or income or both?

• How does it fit in with your life mission statement?

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

You might also want to write down what is NOT your mission. For example, some people do things in life to prove it to somebody else like their mother or father. Also, negative missions like revenge or overcoming frustration are not good for ongoing success. Being honest about this at the outset can be important. For some people it may stop the entire process right here.


2. TRADING AND INVESTMENT GOALS & OBJECTIVES What are your financial trading and investing goals and your investing skills goals? This section deals with how much and WHAT and should detail specific periodic goals. Specifically you state here what your return objectives are and what your risk objectives are.

Return Objectives [Examples]:

• Outline how much capital you plan to invest. o This is a high level amount. How it is divided across different strategies can

be highlighted here but can also be detailed in the Money Management section.

• How much time do you have to give your business?

• The time period you plan to invest for?

o You may cover different terms: short, medium and long term covering many years or decades.

• Will you invest all your trading capital into one strategy or will you use several?

• What returns do you expect to make across all traded strategies?

• The returns you could hope to expect from the SPA3 strategy?

• Over what periodic time periods?

• When periodic goals are achieved will you continue to grow the portfolio or will you move the profits to lower risk investment avenues?

• If so, which investment avenues?

• Will you use leverage or not and if so, what effect do you expect leverage to make on returns and risk?

• Which markets and instruments will you invest in to achieve your return objectives?

[Past performance and research tells us that an unleveraged equities only strategy on the ASX should aim to outperform the All Ordinaries Index by between 10-15% compounded percentage points per annum over any rolling 5 year period. 10% compounded per annum over 5 years = 61.1% overall growth better than the All Ordinaries Index, excl. tax. 15% compounded per annum over 5 years = 101.1% overall growth better than the All Ordinaries Index, excl. tax.] 1._________________________________________________________________________ 2._________________________________________________________________________ 3._________________________________________________________________________


4._________________________________________________________________________ At the end of each 12 month trading period the Trading Capital will be reduced to $___________. This will allow the profits from the trading to be utilised for ___________________________________________________________________. At the end of each 12 month trading period the Trading Capital will be left to compound. __________________________________________________________________________

Risk Objectives

• What risks are you prepared to take to achieve these returns?

• What is the maximum risk you are prepared to take before shutting down a portfolio? This would be the maximum drawdown that you are prepared to endure in your portfolio.

• What is the maximum risk you are prepared to take for each strategy if multiple strategies are used?

• With and / or without leverage.

• What action do you take when the maximum risk objective is reached?

• Under what circumstances do you re-engage your trading capital? (This would link in with the Trading System (s) section below.

• Are your Return and Risk Objectives aligned with your mission statement?

[Example:] I will cease trading when my portfolio exceeds 20% drawdown and will re-start trading again when the next Low Market Risk occurs on the Index.

Skills goals Learn the SPA3 tools and daily processes by completing the video training and other education material in the Share Wealth Systems Education Centre. Study the SPA3 Getting Started and SPA3 Reference manual so I can understand the SPA3 methodology in detail. [Examples]: At the bare minimum, commit to the following SPA3 daily processes which consist of:

• Entry and Exit signals • Risk Management rules • Money Management rules • Risk Management

Write it down so that you commit to learning and following the SPA3 processes.


________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Do you want to advance your knowledge and learn new skills beyond SPA3 rules and processes? If so, which skills do you want to develop and what steps are you going to take?

• Technical analysis • Fundamental analysis

How will you achieve these skills goals? DVD courses, internet, webinars, books, class room training, joining associations? ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ How will you measure whether you skills have improved or not? An example is to move your portfolio returns and maximum drawdown into the top 25 percentile of the most recently 1000 simulated SPA3 portfolios. Mindset goals You may consider further educating yourself. Additional reading such as Mark Douglas’s book Trading in the Zone would be a great start. Also, view the Mark Douglas video content in the Share Wealth Systems (SWS) Education Centre in the Members Zone. This material is provided exclusively to SWS. You must keep a Trading Journal where everything that you think, feel, say or do wrt trading, at the very least for each and every transaction, is committed to your Trading Journal. ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

3. TRADING SYSTEM Does your strategy fit your stated return and risk objectives from the previous section. This section details HOW you are going to achieve your stated objectives and you mission statement. It answers the questions:

• What criteria will I use to decide what instrument(s) to invest in in any given period?

• What criteria will I use to decide to enter a position in a given market?

• What criteria will I use to decide to exit a position in a given market? These questions need to be answered for every strategy that is deployed to achieve the Mission Statement and Goals & Objectives Statement.


Strategy 1 - SPA3 Methodology The trading system I will follow is the SPA3 Trading System as described in the SPA3 Reference Manual.

SPA3 Parameters I will use one of the following SPA3 Parameters with which to trade SPA3:

• Default ASX SIROC 13:05 • Default ASX SIROC 17:07 • Default ASX SIROC 19:07 • Default ASX SIROC 21:08

• I will / will not change the following parameters: o Minimum Liquidity setting (set according to size of portfolio capital) o Maximum Zero Days o MFE Profit Stop and its settings o Any other SPA3 Parameters.

Entry Policy

• I plan to follow the entry signals in strict accordance with the SPA3 rules.

• All SPA3 Entry signals will be used with no priority given to any signal.

o An alternative for consideration would be to trade a sub selection of SPA3 signals such as WCB4, WONB5+DB and WCB1+RSC+DB, OR all signal except for VS+DB.

o Another alternative would be to trade signals with a given volatility range of ATRVE range of 0 or 1 to 4 - 12.

• All SPA3 Entry & Exit signals will be acted upon on the following trading day either at

limit price or at the prevailing market price with my choice of online broker.

Trade Opportunity

• Should there be more than one opportunity to invest available capital, some the following criteria could be used to determine which stock to select:

• Which stock has a position size closest to the available capital? • Is the sector Low Risk? • Which stock has the higher liquidity up to $1.0M average turnover per day? (ASX

100 constituents may perform worse than small to mid-cap stocks but ensure that there is sufficient liquidity for your position size.)

• Select the stock within a chosen ATRVE range, say, 3.0 to 4.0.

• Has there been a recent increase in volume?

• Has the stock price made a recent new high?


• Has the stock broken out from a long consolidation and / or basing phase? • Does the stock belong to a performing sector?

• If so, is the stock outperforming its sector?

Exit Policy

• I plan to follow the exit signals in strict accordance with the SPA3 rules.

• SPA3 Exit signals will be the sole criteria for closing a position apart from closing a trade that was opened in error. In such situations the trade will be closed immediately upon the error being uncovered.

• [Alternative rule for consideration:] I will exit the entire position when a TTMx.x occurs, rather than lightening.

• All SPA3 Entry and Exit Signals will be acted upon on the following trading day either

at a limit price or at the prevailing market price with my chosen online broker. Notes:_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Strategy 2 – An Other methodology

Entry Policy

Trade Opportunity

Exit Policy


4. RISK MANAGEMENT The risk management criteria and rules specified here should address how to remain within the stated risk objectives you have set in the Goals and Objectives section. This section identifies all the risks that you could encounter and then answers the questions of how to identify the changing of risk and how to manage each of the risks.

• What criteria will I use to decide when identified risks change to a higher risk level?

• What criteria will I use to decide when identified risks change to a lower risk level?

• What actions will I take when risk levels change?

Each trading methodology should have its own set of Risk Management and Money Management rules applicable to it documented in the Trading Plan.

Risks also include trading environment such as your computer, power, and software. The bigger risks have to do more with your capital and the market related risks such as:

Types of Risk The types of risk to be managed are:

• Market risk • Sector risk • Liquidity risk • Volatility risk • Stock / company risk • Exchange rate risk (if investing off shore) • Broker risk • Computer risk & disaster recovery

Risk Profiles for Strategy 1 – SPA3 Methodology When using SPA3 as a strategy, you are required to choose a Risk Profile suited to your level of risk. Risk Profiles are the one area that the SPA3 user has the most choice. You may choose to follow the risk profile to the letter or alternatively you can add additional risk features around your chosen risk profile.

Risk Profile 1 is the conservative profile that ensures a portfolio is 100% in cash during SPA3 High Risk periods whilst risk profile 2 takes more risk by being partially invested during High Risk market periods. Choose one of the risk profiles or alternatively write down how you plan to interact with the market.


LOW Market Risk

67% - 100% 67% - 100% 67% - 100%

HIGH Market Risk

0% 50% - 67% 0%

LOW Market Risk

As per available capital



HIGH Market Risk

0Standard as specified in the Trading Plan,

eg. 110

LOW Market Risk

100%OR

Reduce position size as per SR rules

Reduce position size as per SR rules 100%

HIGH Market Risk

0Reduce position size as per MR and SR

rules0

OPEN POSITION

SIZES

Immediately close all open positions when

MR turns to high.OR

Await the next SPA3 exit

Lighten once by 1/3 when MR or SR

changes to high - either immediately or

on next DS for the stock. Lighten to 1/2 of current pos. value when MR & SR high.

Await the next SPA3 exit when MR turns to

high.

PYRAMIDING No pyramiding when SR is high

No pyramiding when MR or SR is high or

ATRVE>5

No pyramiding when SR is high

HIGH VOLATILITY

SIGNALS TRADE TRADE TRADE

% INVESTED

IN SPA

No. of OPEN POSITIONS

SPA3 Portfolio - Risk Profile 12

S P

E C

T A

T O

R

NEW POSITION

SIZES

RISK PROFILES

0 1

Also, will you use one Risk Profile over another all the time? If not, what criteria will be used to determine when to change from one Risk Profile to the other?

Risk Profile 1

1. Money management rules allow for 100% position sizes in a low market and low sector risk.

2. Money Management rules reduce new entry positions by [choose: 0% - 50%] in a high sector risk when the market is low risk.

3. Risk Profile 1 users move 100% into cash when a high market risk signal is triggered and re-engage the market upon the next low market risk.

Notes:_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________


Risk Profile 2 Money Management associated with Risk Profile 2:

1. Money manage rules reduce new entry positions by 33% in a high market risk. 2. Money Management rules reduce new entry positions by 33% in a high sector risk. 3. New position sizes are reduced by 50% when the market and sector are both high

risk

Notes:_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Market Risk

• What criteria will I use to determine when Market Risk is considered high or low? The definition of Market Risk and Sector Risk are as per the SPA3 Reference Manual.

Example of Market Risk for Risk Profile 1 Low Market Risk When the Market Risk changes to LOW:

• New positions will be entered into, in accordance with Risk Profile 1.

High Market Risk When the Market Risk is HIGH:

• No new positions will be opened, in accordance with Risk Profile 1.

When the Market Risk changes to High:

• All open positions will await the next SPA3 exit signal to occur before exiting.

The following bullet point provides another option that may be suitable for your portfolio:

• All open positions will be exited the following trading day after Market Risk changes to HIGH.

Please fill in the gap once you have chosen a Risk Profile and understand how that Risk Profile interacts with the market.

• When the market risk is HIGH the position sizes for new trades across all risk categories will be reduced by [Example: 33% or 100%] ________%


Notes:_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Sector Risk

• What criteria will I use to determine when Sector Risk is considered high or low? The definition of Market Risk and Sector Risk are as per the SPA3 Reference Manual.

• When the sector risk is HIGH the position sizes for new trades belonging to that sector and across all risk categories will be reduced by [Example: 0%, 33%, 100% (i.e. only Low Sector Risk trades will executed)] ________%

Market AND Sector Risk

• When both Market and Sector risk are High new trade position sizes will be reduced by [Example: 50%, 100%% (i.e. no trades will executed)] __________%.

Liquidity Risk No trade will be taken in any security unless the 3 month average daily value of shares traded in the security is at least 8 times greater than the desired trade value. No position will be taken in any security that has had more than 3 zero volume trading days in the previous 3 months, excluding periods of suspension. [Example: A $10,000 stock position would need an average daily traded value of $80,000 a day.]

• No position will be taken in any stock that has had zero volume traded on any

[Example: 2________] day/s in the previous [Example: 3 ________] months.

Volatility Risk Only entry signals with an ATRVE between ______ and ______ shall be traded. [Example: between 1 and 12]

Risk Profiles for Strategy 2 – AN Other Methodology


Types of Risk The types of risk to be managed are:

• Market risk • Sector risk • Liquidity risk • Volatility risk • Stock / company risk • Pairs risk (FX) • Diversification Risk (ETF)

5. MONEY MANAGEMENT Whilst risk and money management principles will be similar from one strategy to the next, the actual rules of how much to apply will differ from strategy to strategy depending on how good an edge the strategy has and how much leverage it uses. Money Management determines how much of total capital will be invested using a particular Trading Methodology or strategy.

SPA3 ASX Example only: 50% __________ SPA3 USA (off shore) Example only: 40% __________ SPA3CFD (if you are using both)Example only: 10-20% __________ SPA3 FX Example only: 10-20% __________ Cash Example: 10-25% __________ Managed Funds (LTH) Example: 10% __________

100% Notes_________________________________________________________________________________________________________________________________________________________________________________________________________________________ Expected returns are as follows: The nominal returns are based on a compound annual return achieved over a rolling 5 year period.

Methodology Nominal % Return Amount Invested Outcome

SPA3 ASX 10- 15% cpa _______ $150,000 ________ $15000+ _______ SPA3 USA 8 - 12% cpa _______ $100,000 ________ $8000+ _______ SPA3CFD 25-35% cpa _______ $ 40,000 _______ $10,000+ _______ SPA3 FX 50 - 100% cpa _______ $ 25,000 _______ $12,000+ _______ Cash 4% cpa _______ $20,000 ________ $800 _______ Funds 4% cpa _______ $25,000 ________ $1000 _______ Total $360,000 ________


Capital Allocation – Strategy 1 SPA3 Methdology

Capital Allocation - Risk % The Portfolio Risk % will be based on the portfolio value and reviewed each quarter.

• The portfolio will use a Risk % of ______ [Example: 0.5%] Money in the Market

The objective is to expose all portfolio capital to the market as soon as possible during periods of Low Market Risk. (Risk Profile 1) Multiple Opportunities

Should there be more than one opportunity the following process, in order of priority, shall be used to determine the STOCK to be selected:

• Only full position sizes shall be initially considered.

• Low Sector Risk.

• Alphabetical order using a rolling start letter that corresponds with the current day of the month. This creates a pseudo random selection.

The above criteria have been selected to provide an unbiased, consistent and measurable process. This is not a statement of endorsement. The following bullet points provide a sample of other criteria but the final criteria should produce a single trade with no ambiguity.

Other possible criteria are:

• Highest ATRVE.

• Stocks outside the ASX200

• Does the Stock belong to a performing sector? If so, is the Stock outperforming its sector?

• Has the Stock price made a recent new high?

• Has there been a recent increase in volume in the Stock?

Maximum brokerage rule If the brokerage for any transaction is equal to or greater than 2% of the market value then the transaction will not be executed. This includes Buys, Pyramids & Lightens. Sells shall always be taken. The TTM signal is excluded from this rule and shall always be taken.


Insufficient Capital for the next Trade If there is insufficient cash to fill the required position size for a signaled trade then:

• Select a trade from the list of signalled trades that is closest to the remaining cash available in the portfolio but not less than ⅔ (67% = 0.67) than the original position size provided the Maximum Brokerage Percentage Rule is not broken.

For example, if a $150,000 portfolio has $4,500 available capital and the list of signalled trades have calculated position sizes ranging from $5,000 to $15,000 then select the $5,000 trade and reduce its position size down to the available cash of $4,500 (90% of the original position), including brokerage.

Maximum Market Value

• The maximum position size is [Example: 25% ________%] of the total portfolio value. Position lightening must take place if any single position exceeds this limit.

Takeovers A currently open trade must be closed 20 trading days after a take-over announcement of the stock that is the currently open trade.

Pyramiding Rules

• Pyramiding opportunities will be exploited according to the SPA3 rules subject to the availability of funds. The maximum position size for any individual stock will be [Example: 20% ________%] of the value of the portfolio. Should any stock reach or exceed this limit no further pyramiding is allowed.

• The maximum number of pyramids to be entered into an individual stock is ___.

“Lighten Once” rule A “Lighten Once” rule will be implemented. This means that if a trade has already been lightened once, no more lightening will take place for the duration of that trade. The TTM signal is excluded from this rule and shall always be taken. Additionally, it shall not be included in the lighten count and therefore a further lighten may occur.

Capital Allocation – Strategy 2 AN Other Methdology

Capital Allocation - Risk %


Money in the Market Multiple Opportunities Maximum brokerage rule

Insufficient Capital for the next Trade Maximum Market Value

Takeovers

Pyramiding Rules

6. OTHER TRADING RULES

• The ASX will be the only market traded. OR

• Other markets / instruments traded will include: o Equities (unleveraged) USA o CFDs ASX o CFDs USA o FX

• Only listed stocks will be traded and Property Trusts will not be considered. (SPA3

investors do not enter property trusts because they are not well suited to medium term trading).

• A liquidity test will be applied to all potential trades. Trades will be executed as the Strategy Entry Signals occur providing there is available capital for that Portfolio Risk %.

o If there is insufficient trading capital for the next trade then the trade with the closest signaled position size to the available capital will be selected provided that the signaled trade’s position size is not < .0.67 of the available capital.

• If a trade is made in error it will be closed immediately and will not be removed from

the portfolio history.

Other Discipline Management Rules are:

• Money Management rules and SPA signals will be followed precisely and

mechanically.

• At any time any deviation from the Trading Plan will be noted. If the deviation results in a modification to the Trading Plan it will be formalised. If the deviation was an error, action will be taken to ensure that it does not recur.

• I will keep a Trading Journal that will document every tranasaction that I execute and note everything that I think, feel, say and do for every transaction. I will do this for [Example: 40 = 20 completed trades] _________ transactions (1 trade = 1 buy and 1 sell + pyramids and lightens).


o I will then review my Journal [with a trading mentor] and decide whether to repeat the process for another 20 trades (40 transactions).

Placing Orders in the Market Orders will be placed online using [Example: CommSec, E*TRADE, BBY, Saxo Capital Markets] _________________________________________________. Orders to buy or sell will be placed at [Example: 11.30pm] ____________and will be Limit Orders set to the market price for the quantity to be bought or sold. If the Limit Order is not executed within an hour I will place the trade as a Market Order provided there is sufficient liquidity in the market for my position. Notes_________________________________________________________________________________________________________________________________________________________________________________________________________________________ A set of order placing processes should be documented for each strategy that is deployed as part of this Trading Plan.

Daily Process – Strategy 1 SPA3 Methodology If SPA3 is being used as the sole strategy then much in the trading plan is embedded into the SPA3 tools and manuals. This being the case you are required to implement a set of daily processes to use SPA3. 11 steps are listed below to help you complete your daily processes. Ensure the latest data has been downloaded.

• Step 1 - Market/Sector Risk:

Check the Market Risk and if a there is a change to High or Low, follow the appropriate Market Risk strategy.

• Step 2 – Portfolio Analysis

Perform a SPA Scan on the open trades to check for new signals. If there are new Exit or Lighten signals, close or lighten the trades on the next trading day. If there are new pyramid signals, margin is available and the Market Risk is low, then pyramid the trades on the next trading day.

• Step 3 – Open New Trades

If a planned open trade needs to be filled, perform a SPA Scan on the entire market to find new entry signals. If there are new Entry Signals, they comply with the trading plan and margin is available, then open the trade on the next trading day.


Daily Process – Strategy 2 AN Other Methodology

7. PERFORMANCE MEASUREMENT Failure to meet ones objectives is merely feedback on what development one needs to improve to meet them in the future. The investor with PURPOSE and desire will find a way. The investor without purpose and desire will fall by the way.

• What is your performance bench-mark? o For each strategy?

• How often will I measure my performance?

o Weekly o Monthly o Quarterly o Annually o All or part of the above

• Is the time I invest managing my money a fair reflection of the returns that I am

achieving?

• If I fall short of my return objectives why has this occurred? Because I didn’t follow the processes correctly or because of systemic differences to what was expected?

• Did I exceed my maximum risk objectives? If so, why?

• What will I do about it?

o How will I modify my Trading Plan, if at all?

• Having a plan and benchmarks allows one to conduct skills gap analysis. Filling that skills gap feeds back into the skills objectives in the Goals and Objectives section.

• How often will I review my Trading Journal? o What actions will I take about how I think, feel say and do?

• How will I measure the level of my execution skills?

o What will I do about achieving continual improvement?

• How will I measure the improvement in my mindset skills? o What will I do about achieving continual improvement?

• How will I measure the improvement in my analysis skills?

o What will I do about achieving continual improvement?

Documents

Trading Plan Template