How do you plan your trades?

[arbitrage16]

For both in-running and pre-race trading I am finding that I do not plan my trades, rather I am entering on instinct and then figuring it out as I go. Rather than executing as I would like, I am finding that this makes me very reactive, which in one sense is positive - I want to be reacting to market signals - but in another sense I am trading at my best when I am assertive with how I scale in and scale out of trades. Without a plan, it seems as though I am trading a little 'on the hoof' and this is sub-optimal.

The issue I find is that before I know it, I have entered the market and often am making up the plan for entries/exits as I go along, which with the emotion involved in trading is not the best.

So I'd like to know, how do others do it? Are you writing down what your entries and exits are going to be? Doing it in your head? Or some other grand system? Thanks!

p.s. obviously for manual traders!

[stueytrader]

I find it can differ across different selections personally.

Some of my trades I will enter with a very definite plan (e.g. specific target out price). However, I also think that can limit you in some markets, where going longer 'with the flow' will yield much better than starting out with a definite plan.

Sorry, if that rather doesn't answer your question, as I do both currently!

[arbitrage16]

That's useful, thanks - in the trades where you do have a plan, is that something you have written down, or is it just in your head?

[spreadbetting]

You need to concentrate on what works for you, if you think planning trades in advance will be more profitable you need to try it out for yourself. Other people's experiences will have no effect on your own trading other than to convince you you're doing something wrong.

[arbitrage16]

You need to concentrate on what works for you, if you think planning trades in advance will be more profitable you need to try it out for yourself. Other people's experiences will have no effect on your own trading other than to convince you you're doing something wrong.

That's a fair point, but I'm looking for ideas about how other people do it because what I've been doing hasn't really been working for me. How do you plan your trades spread?

[spreadbetting]

I don't plan in advance, I've pretty set ideas of how I trade so just use them when the opportunity comes up. I'm just a lazy trader these days I'd be surprised if my idea of planning would help anyone

[stueytrader]

That's useful, thanks - in the trades where you do have a plan, is that something you have written down, or is it just in your head?

I wouldn't say I've always written it down externally, rather decide the plan and keep it in mind - maybe I should write them down though, might help me at times!

[Derek27]

For me trading is too fast moving to really plan. Most trades that I open are triggered by price movement and I just have seconds to react, so it's a case of making a decision - the plan's automatic.

[Korattt]

through recording the markets you should find repeating patterns, try & pick ‘em out, when you know what these patterns look like it becomes easier to know what to do & when, there’s stuff now that I think exists but I’m not sure, I’ve recorded the past two days markets & will study ‘em again & again & again until something jumps out at me