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How to Attack the New Year with a Plan
Jan 3, 2010
OK, I know you’re going to say, “Here we are in 2010 and now I have to do the plan again?” YES, now is the time do create your 2010 trading plan if you haven’t done so already. It IS so very important and will last the whole year because it should be a “living” document that is always being worked and changed as needed.
We (traders) seem to get rejuvenated in January for some reason. I think it happens because of the sluggish December markets and low volumes. If you were trading at the end of December it was like watching grass grow. When it’s so slow and few trades show materialize, traders tend to build up trading anxiety.
Some will even go into overwhelm not knowing what to do, with the desire to trade so strong. The descriptions I hear are “antsy, irritable, anxious frustrated. The only solution is to stop with everyone else and stay away till everyone returns from the holidays.
This year in particular December seemed extremely slow. The year seemed to exhaust traders with all the challenges and stricken economy, it was difficult to stay up-beat.
Well no worries the big guys that checked out early in December to lock in their profits and take a vacation from their trading, will be back now. They also will be ready to trade to get a good start to the New Year.
With trading firms changing their policies and commissions up and down Wall St. and know one knowing what regulations the Fed will come up with, my guess is many traders might be looking to head out on their own to trade and add to the pool of trader at home. Those that have made this transition already in the past year are beginning to understand that this is not such a bad idea and one can do nicely with the right knowledge and preparation. Trading from home does have its advantages.
Regardless if your new to trading on your own or you are working for a firm “The Plan“ you create for yourself is still an important part of the years success.
Why do we need a plan?
An amazing thing happens when you can add detailed definition to an outcome. The more detail you can pour into a plan the more things seem to just happen. Many say that just the mental process of designing and defining the plan has a higher possibility of automatically manifest the results.
When I had the radio show and interviewed experienced successful traders there was a consistent commonality, they all had a plan. Many of them worked on the plan throughout the year changing and refining things as they went along. Changing, adding, adjusting monthly, increases the percentage of success, keeps the trader focused and aware of where they are in relation to the outcomes they want.
This is specifically WHY the trading PLAN is so important. It’s there to provide direction, certainty and a way to attack the year with confidence.
I did find that the most successful traders have plan. So you will be in good company when you get yours together.
So let’s break down where to begin, let’s not go into overwhelm and let’s design a plan that will work to clear the cobwebs and get your trading moving in a great forward direction. Besides, how will you know you did the right thing if you have nothing to compare it to?
OK, first things first. To move forward you have to know where you’ve been.
It’s important to take an assessment of what happened last year. One way to do this is to look at several areas of your trading and life and ask some questions that will than provide you direction in developing what you want for the New Year.
Here are some suggestions of questions to start with:
1) What markets were you trading and were you happy with the results you got from them in 2009?
- If not – than what markets would you be exploring for 2010?
- What do you need to do to educate yourself in these new areas?
2) What were your biggest obstacles from last year in your trading?
- Emotional challenges
i. What were the specific emotional issues and how will you provide focus to address them?
ii. Would coaching help?
- Technical challenges
i. Is your methodology working?
ii. If not how will you adjust it
iii. What additional training or books can be used
- Market challenges
i. Define issues and fixes
3) What did you do well in your trading or what worked the best?
- Be sure to include everything that works
4) How did you do financially?
- Daily, monthly and yearly
5) What were your obstacles in reaching your financial goals?
6) How will you address them and change for 2010?
7) What else happened last year in your business, personally, and financially
- Be sure to include family, friends, health your environment (home and office)
- What needs to be changed, refined or added
From these questions and one for your specific situation come up with the areas you want to attack in 2010 and be sure to incorporate the solutions to the challenges you experienced in 2009.
Many traders have the tendency to do the trading parts of their plan and forget the other parts of their lives that come into play. Include those parts that create a good “balance” and add to you well-being and those around you.
Add parts to the plan and consider “time” needed. Creating a plan that can’t be implemented makes no sense. That’s one of the reasons to revisit the plan from time to time so adjustments to reality can happen.
Oh I almost forgot the most important thing create your plan and include F-U-N. What activities can you do to have fun create “magic moments” those experiences you will have for a lifetime and memories that those around you will also enjoy. Like visiting the grand canyon with the family or a hot air balloon ride or seeing a favorite performer (ance).
Go for it and create your magic! And I wish you great successes in 2010!
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