| Some things to consider when doing a Trading | | | | may well become your exit signal. |
| Plan. | | | | Exit signals are not only created by a changed |
| Your Trading Plan basics will vary slightly | | | | direction of a stock. You may be happy with a |
| depending on whatever style of trading you wish | | | | certain profit level and when reached that will |
| to do. | | | | become your exit trigger. |
| If you wish to become an Option trader you will | | | | It is valid to remember that whatever it is that |
| have different trigger points to what you would | | | | triggers your entry and exit strategies there is |
| have if you were a long term investor. | | | | someone else that thinks the opposite is going to |
| As an Option Trader you are more likely to be | | | | happen and that will trigger a complete different |
| affected with Company announcements and data | | | | set of exit and entry levels for them. |
| releases by Companies. | | | | Decide in your plan how much of your capital you |
| You will be more inclined to study short term | | | | are going to allocate to each trade you enter. This |
| movement and take notice of things like when | | | | will help especially when all indicators look great, |
| dividends are paid. | | | | you will not be as tempted to increase your |
| If you are a long term investor more a Buy and | | | | investment because you have a nice "feeling" |
| Hold type Trader then you will be more interested | | | | about it. |
| in dividend yield and the long term trends of the | | | | Refine your Plan until it is second nature to you |
| stock when formulating your Trading Plan. | | | | and is the fundamental basis of your trading. |
| If you can establish the type of Trader you wish | | | | Go over old trades especially the ones that go |
| to become prior to doing a Trading Plan that will | | | | wrong, learn from your mistakes as much as you |
| help you chose and determine what criteria you | | | | delight in your wins. Print out your trades so you |
| should use for your entry and exit strategies and | | | | have a visual reminder of what you do right and |
| also help you with the decision of how much of | | | | what you may have done wrong. |
| your capital you are going to invest in the trade. | | | | Always be prepared to refine your plan to keep it |
| What criteria will trigger an entry into a trade? | | | | as simple as you can, test sections of it to make |
| and | | | | sure it works how you want it to and alter it if |
| What criteria will trigger an exit from a trade? | | | | you find a better way for you to trade |
| These two triggers are very much | | | | successfully. |
| interconnected. If your entry signal changes it | | | | |