“You have brains in your head. You have feet in your shoes. You can steer yourself any direction you choose. You’re on your own. And you know what you know. And YOU are the one who’ll decide where to go…”
― Dr. Seuss, Oh, the Places You’ll Go!
Read time: about 1.42 min.
Not knowing where you are going will get you somewhere, but not where you intended. A trading plan works the same way.
We assembled all the essential pieces for trading – charts, entry and exit strategy, stop loss, indicators and, most notably, a thorough study of the market we will be dipping into. Our toolbox is ready, and we are prepared to trade. It’s similar to getting ready for a trip – preparing the itinerary, packing our belongings, cash and other relevant documents, emergency contacts, including a tuned-up vehicle with a full gas tank.
An effective trading plan helps us preserve our capital and sanity, similar to a well-planned trip that helps us prepare for any detour or an emergency.
As you may agree, that life is much more than planning excursions or vacation trips. Not surprisingly, we spend a lot of time preparing for comfort and pleasure. Think about it. Yet, we spend less time planning for essentials, things that matter. We seek the instant manifestation of pleasure but avoid delayed gratification, which could be more meaningful. We do that because most of us find the path of least resistance.
Ten questions for us.
- What’s our plan to keeping us intellectually and mentally sharp?
- What’s our plan for keeping healthy relationships?
- What our plan for instilling better values in our children?
- What our plan for educating ourselves about other cultures?
- What’s our plan for training for better health?
- What’s our plan for developing new skills to grow and thrive?
- What’s our plan to work on what matters?
- What’s our plan for avoiding distraction?
And my favourites –
- What’s our plan for pursuing our dreams?
- What’s our plan for leaving a legacy?
Assembling a trading plan opened my eyes to other essential areas of my life. I have begun my journey, and I hope you have as well. It’s never too late for anything. Often, the first step is all it takes.
I will wrap up next week with the final lesson I learned from trading. I hope it has helped you. I hope it has sparked some thoughts and hopefully nudged you to take the next steps.
Thank you for sharing some of your precious time with me each week.
Until next week.