In this Seven-Part Course, I’ll lead you through the highlights of devising a plan to trade. Our focus is on Stock
Index Futures – in particular, S&Ps and NASDAQ – but many of these lessons can be applied to any market. My
goal is to help you – whether a novice or an experienced trader – to trade better by preparing better.
In Part 1, we examine the first step in devising a plan – preparing mentally for the trading day. You can’t just start
trading without mental preparation any more than a professional football player could just suit up and go out on the
field. This mental preparation underscores what I consider to be the first requirement of trading – discipline.
Discipline is what enables you to devise a trading plan, execute that plan and stick to it when things don’t go your
way. With a little discipline, you may have a little success. With more discipline, your successes will be more
frequent and more consistent, and a totally disciplined trader will have the best opportunities of all.
In Part 2, we’ll examine the personality of the market. In order to devise a trading plan, you must know, for
example, if you’re in a trending market or a range-bound one. I’ll share some hints and advice on how to tell the
kind of market you’re trading – and how to learn from your mistakes.
In Part 3, we’ll look at trade execution with entry and exit points and stop-order placement. We’ll discuss risk and
reward, dealing with losses – and wins, and how to keep your focus when everyone else in the market is losing