July 28, 2021
Total Video Time
2 hours, 17 minutes
- 011 Why do I need a trading plan? 00:06:00
- 012 The five Ws and the how 00:08:00
- 01 Quiz 00:10:00
- 021 Business Opportunity Analysis 00:12:00
- 022 Capital Inputs 00:08:00
- 02 Quiz 00:10:00
- 031 Personal Awareness 00:15:00
- 032 Emotional Reactivity 00:13:00
- 03 Quiz 00:10:00
OverviewThe trading plan should outline all aspects of your trading.
Learning outcomesAt the successful completion of this course, you should be able to:
- describe the 3 key pillars of the plan,
- answer the 5 Ws of What, Why, Who, When, Where and the How of your trading,
- differentiate between monetary, human and intellectual capital, and
- complete the corresponding sections in the trading plan template.
- explain the various costs of your trading business,
- evaluate the probabilities of win and loss trades,
- objectively assess the viability of active day trading,
- describe the critical input factors for successful trading,
- weigh the advantages and disadvantages of trading your own or other people's money, and
- set both general and specific SMART goals in your trading.
- explain how cognitive biases may influence your trading decisions,
- evaluate your own strengths and weaknesses related to your trading,
- apply methods to recognize your cognitive biases and mitigate and/or eliminate them,
- understand how emotions may impact your trading decisions,
- differentiate between temporary and permanent stress reactions, and
- use regulation techniques to control emotions and remove unfavorable emotions from your everyday trading.
- describe how changes in various input variable impact probability distributions,
- use trade- and time-based risk limits to avoid catastrophic loss of your trading account,
- perform simple Monte-Carlo simulations and interpret corresponding probability distributions,
- calculate the expectancy value and risk-over-reward ratio of a trading strategy,
- use the Kelly Criterion to define optimal position size and loss limits, and
- select corresponding trading vehicles that match your risk profile.