One of the leading causes for the failure of many businesses is their lack of planning.
If you want to be successful in life and business, you need to have a plan for how to obtain that success.
Trading is no different from any other business.
It is important to have a written business plan for your trading just as you would for any other business.
Like we mentioned in the previous lesson…
“If you fail to plan, then you’ve already planned to fail”.
In other words, those who fail to plan out their trading like a business are doomed to fail.
Here are twenty-one crucial questions that you should have an answer to as part of your trading plan.
If you’re really serious about trading, take time to ponder the questions above.
Growth and success need direction and a sense of purpose. Which must first be identified and clearly stated. They won’t appear on their own.
A clear roadmap forces accountability and responsibility, which sometimes may lead to a change in the plan (like when your trading system or strategy stops working). Which is fine, but you won’t know that change is even needed unless you’ve established in clear terms, what is considered “working” and “not working”.
Risks can be turned into opportunities, but first, you need to have identified what the risks are . If not, when they arrive as a crisis, you’ll be on your back foot, most likely panic, and make poor (and unprofitable) decisions.
As you can see, there are many things to consider before hitting that buy or sell button in your trading platform.
Answering each question will not guarantee trading success, but NOT answering such questions will almost certainly guarantee failure.
The choice is yours.
Results are usually proportional to the quality of the planning.
Don’t set yourself set up for failure. Set yourself up for success.