A trading plan (Part 1)

One of the best way to not let emotions influence your trading activities is to have a defined trading plan that describes in concrete terms what you will do in any given market scenario.


Many traders do not attempt to have a trading plan because they aren’t really sure where to begin or how to write one. (In that case, I help you with one)


Success in the markets is a function of discipline, and most people simply do not have enough self-discipline to determine if they are trading emotionally or objectively. This is where having a defined trading plan comes in; a trading plan will act as a guide which will keep you on the disciplined trading path.


What are the critical elements of a trading plan?


1) Determine the Trend Direction (How?)


1.1) Pull out your PPTA (Pink & Purple Trend Analysis) and it will show you whether the current price is in Bullish mode, Bearish Mode or Sideway mode.


1.2) A total of 7 scenarios, I will list 2 here. (you do your own homework for the other 5)

The above chart showed that "ES" has been trading from sideway (pink inside purple) to Bullish mode (pink above purple).


Action: Enter on pullback together with candlestick signals.

PPTA is in bearish mode (widely spread open), but price is trending up. Now is the time to separate PPTA and use it like 2 "TY-Map".


Action: price closed above pink, enter "Long" on pull back candlestick signal.

*Long = Buy

Trading pullbacks is one of the most popular forms of trading among traders and it can be profitable if done properly. Therefore, we prefer a more precise, quantified approached together with exact entry and exit rules in place.

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Futures Trading is speculative and is not suitable for all investors. The risk of loss in trading can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. This brief statement cannot disclose all the risks and other significant aspects of the Futures markets. You should therefore carefully study Futures Trading before you trade. Information and trading tools provided in and through this website are for general information purposes only. All investments involve risk, including potential loss of principal. Clients must consider all relevant risk factors, including their own personal financial situation before trading.