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Kosentrade’s trading business plan.

09/13/2011

Below is a rough outline of the trading business plan that I use. There are two sections. First is the overview of my larger objectives. Below that, I have monthly objectives. These I adjust each month as I see necessary.

I have removed many specifics of my goals and plans because I believe that these are personal, and while I don’t mind sharing them, I intend this to be a more general overview. I wanted to post something that others may find useful to compliment their own plans, while not taking a plan directly from another trader. I have no problem talking about specific goals, but this blog post is not the appropriate place for that conversation.  In other words, my “X”es are on the random side.  You should probably not copy this plan, but rather use it as a guide.

As always, I welcome feedback.  Next week, I will defend and elaborate on different aspects of my trading plan.  If you’ve been around trading for a while, you will probably find that there is nothing remarkable about my plan, and I freely admit to having borrowed ideas from others.  I do not believe in re-inventing the wheel when it comes to building things.  To continue with my construction analogy, why would I tell a contractor how t renovate  a house when he already knows how?  I would simply tell him how to perform the renovations to my standards.

 

Trading Business plan for Tim Kosen

Objective: to make the most amount of money possible with the least risk.

Goal: to turn $XX,XXX into $XXX,XXX in 24 months.

Stipulations:

•I will increase my account balance by XX% a month
•I will limit my drawdown
•I will maximize my profit while minimizing my risk
•I will not draw money out of this account until I have reached 20% of my goal
•I will keep a daily trading journal outlining my trades

I may elect to outline each trade, or simply the trading philosophy and results for the given day

•I will write not less than one weekly blog entry
•I will post not less than one chart or video update on stocktwits a week

Risk Management:

Trades:
•I will risk no more than 2% of my account on any given trade

When practical, I will attempt to risk no more than 1% of my account balance on any given trade

•I will have no more than 5% of my account balance at risk at any given time
•I may have as many positions open simultaneously as I desire so long as I stay in the above stated parameters
•I will lose no more than 5% of my account in any given day
•Once I have hit 200% of my daily objective, I will refrain from trading for the remainder of that day

If I have longer term trades open, I may elect to manage those

•I will attempt to limit my trades to 10 a day
•Unless the market dictates otherwise, I will take no less than one trade a day
•I will target between XX and XX pips on any given trade

Monthly:
•I will attempt to increase my account balance by XX% a month

Once I have reached 200% of my monthly objective, I will refrain from trading for the remainder of that month

•I will attempt to increase my account balance by X.X% a day

Once I have reached 200% of my daily objective, I will refrain from trading for the remainder of that day

•In the event that I have a 20% drawdown in any given month, I will refrain from trading for the remainder of that month

 

 

 

Month 1 objectives

Goals:
Starting Account Balance $XXX,000
Ending Account Balance $XXX,000
Cumulative Profit $XXX,XXX.

Average daily gain (goal) $XXXX
Maximum daily gain $XXXX

Risk Management:
Maximum daily loss $XXXX
Maximum monthly loss $XXXXXX

Trading hours. (and sanity)
I will wake up by 4:30 am
I will trade the New York session until at least 9:00 am
I will make every effort to not trade past 12:00 PM
I will get at least 1 hour of exercise a day
I will surf not less than 1 time a week
I will go to the gym not less than 3 times a week

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