I think it's that way.
No, I'm sure it's that way, but maybe it's that way.
I told you we should have planned ahead.
We could end up anywhere .
I tell you something, we're going to end up in a place we don't want to be.
Why? Because we didn't plan ahead! Now, this video is going to be slightly different than the ones I've done for you in the past.
You know, I recently took a boat trip away with my family.
And I thought to myself why not bring you guys along with me for the ride.
After all, boating and trading have much more in common than at first you may think.
If you don't know what you're doing you could end up in a right mess, and in both cases you need to have a solid plan.
Think it's this way.
No, I think it's gonna be over there.
No actually it's gonna be over there.
It's that way .
I wish we had a map, you know.
All I want is a map! So you can't see anything maybe it's over there.
Maybe, maybe if we head down that way.
Okay, so what we're going to do now.
We're going to pull out of here about an hour and 20 minutes down to the next stop.
Where we can stop for a bite to eat? Nice little country pub down there, and we'll more up down here.
Which is another hour and 40 minutes.
So we'll get in there for about four o'clock Everything's under control, no need to panic.
Got my map, I've got a plan.
Everything should be fine.
Look at that lovely windmill! And we know where you're heading, chances are, you're going to get there Always plan ahead.
So pretty much everything you do in life.
, you've got a plan in advance We've all heard the expression before If you fail to plan you plan to fail, and this is no truer than sailing or indeed, trading.
And if you fail to plan, chances are you're gonna end up in a place you don't want to be Now for tonight, I've planned ahead.
I know where we're gonna be mooring up for the night.
Where we gonna eat And that's the same when you're trading.
And this is the same as trading you've got to have a plan! Now, with trading you need to have a business plan, and a business plan is separate to the actual trading plan.
Don't get confused.
Business plan starts off with the mission statement.
Why do you want to be a trader in the first place? Do you want to be giving up your day job and become a full-time professional trader? Do you want to supplement your income? Maybe you want to buy a car and you want to start trading to put money to the car finance.
So many different reasons why people start trading.
But you've got to set out the reason why you want to trade.
Are you gonna be a day trader? Are you gonna be a swing trader that basically takes long term positions.
So you start your trading plan with a mission statement.
Why the business is being set up in the first place? Do you want to be a money manager? Do you want to be trading other people's money? All these things need to be set out in your business plan you also need to set out how much capital you're going to allocate to trading.
How much capital you can allocate to tuition? What type of percentage gain do you expect to achieve from your trading?Are you looking to achieve one or two percent a month? Do you intend to make withdrawals every month? Will you be adding money? You need to set out in your business plan? What are these that you're going to be trading? Are you going to be trading Forex? Indices? Are you going to be trading the stock market?You need to put out how you're going to journal your business.
How you're going to log all your trades.
You need to set out when you're going to review your business.
When you're going to make adjustments to your business.
When are you going to employ staff to help you in your business.
You also need to set out on your business plan when and if you're going to tweak the business.
Maybe it isn't going according to plan you don't change every day you have milestones that you need to reach where you review your business All these things needs to be set out in the business plan.
I'm coming up to a bridge in a minute.
I've set out this morning, the tide levels so I know that I'm going to make that bridge I know that this boat is going to make it under the bridge.
Why? because I pre planned? I'm not too sure about the camera man.
I know the height of my boat.
I know the height of that bridge.
There's going to be no shocks in my train trip today and There should be no surprises in your business.
Look at that.
Beautiful! Every trading plan should also include the strateg.
Now, you can have a number of different strategies.
As I said, don't confuse your business plan with your trading plan.
Your trading plan would include a series of rules.
Rules of engagement.
When you're going to buy, when you're gonna sell, the risk management that you're going to employ .
Trading s like sailing a boat.
Down the waterways of Norfolk.
It's sunny England! It's sunny England! It's sunny England! It's sunny England! Gotta have a plan! I know I've got fuel on board.
I know I've got water on board.
I've know I've got power I've got my map I know where I'm going That's the exactly the way your business should be.
One of the beauties of being a Forex trader is the ability to do this on a Tuesday morning.
I can always check on my trading positions as well.
Not that I want to be doing much trading when I'm in this beautiful countryside, as you can see.
And the lifestyle of a trader really, should be like this No stress.
Everything under control.
Beautiful sunny day in Norfolk.
Boating down the waterways.
120 miles of waterways here and the beauty of being a Forex trader is that if I want to explore them I can explore them And if I really want to carry on work, I can go down there and carry on work as well.
And that's one of the beauties of being a self employed, professional Forex trader.
Your trading plan should include: How you're gonna back test? And what metrics are you gonna use in your back testing? How can you gauge if the strategy that you are thinking about employing with your money is viable.
And once you've done your back testing and you've got your strategy.
You know that it's gonna work.
Why? Because you've done your back testing.
How often are you going to decide? Windridge introduce a new strategy again.
That's in your business plan So you get the ide, if you plan ahead, he chances are, you're going to end up in a place where you want to be.
If you fail to plan, chances are, you're gonna be in a place where you don't want to be.
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Until the next video, , happy trading and good luck!!!.