If you want to become a successful trader, you MUST have a written trading plan and YOU MUST FOLLOW YOUR PLAN. A good trading plan is based on the following 4 components:
4 Trading Environment and Equipment
Financial Safety Net
Trading Capital
Funding Trading Account
Stop Loss Order
Target Price
Reward vs. Risk Ratio
Diversification
Position Sizing
Exit Strategy
Margin
Style of Trading
Strategy (Plan A)
Money Management (Plan B)
Success Binder
Trading Journal / Log
To Do Lists
Approach
Commitment
Discipline
Focus
Patience
Flexibility / Adaptability
Personal Responsibility
Manage Your Emotions
Nutrition
Exercise
Sleep / Relaxation
Posture
Trading Room
Computer
Monitor(s)
Uninterruptible Power Supply
Backup System
Firewall
Antivirus Software
Internet Access
Trading Platform - with ability to back test trading strategies and real time quotes, charts and news
Television
Telephone
Chair
Conclusion
Sample Trading Plan / Trading Checklist