Skillsfirst Level 3 Certificate in Introduction to Financial Trading (RQF) - UNIT 1: Principles of financial trading
Skillsfirst Level 3 Certificate in Introduction to Financial Trading (RQF) - UNIT 2: Principles of Financial Planning and Cash Flow in Financial Trading
Skillsfirst Level 3 Certificate in Introduction to Financial Trading (RQF) - UNIT 3: Understanding financial trading techniques

PLAN RECAP BEFORE YOU START

Structuring your trading business should be no different than what any successful businesses do when they decide to start up, and that is to develop a written plan. So it would make clear sense to view your trading early on as a business and set yourself two plans; one for the business, and one for the trading. Just as a successful business a trader should be looking for steady, consistent growth in earnings rather than home run big hitters all the time, these are great but don’t always guarantee long term success. I can assure you that a lot of traders will bounce from one extreme to the other having big hits one day and taking big dive bombs the next, this irrational method of account management is not good for the nerves nor is it working your business efficiently.

One of the first things you should be asking yourself is why are you trading in the first place, there has to be a motive for your actions as a trader. These reasons must be clear and understood. After all, if you don’t know why you’re here, how can you know where you are going? You should have already done this by now after reading the Goal setting lesson in the Psychology section, but if not DO IT NOW! It would be prudent to think about the chart below when you are developing your plan because knowing your available tools will give you the ability to be flexible, adaptive, and consistent.

A key part of your business is the trading plan, as with all the great traders they have a trading plan or system and you should be thinking along the same lines. It will take time to get a trading style/system together as practical experience in the markets will come with hands on practice.

Let’s recap on some of the key features we have learnt in the course to help you develop a business plan:

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