Is it necessary to have a traders trading plan? I was convinced that it was after reading a 60 page article from TW (the author) that it was; I was impressed with the article and questions; then only later to find out that he isn't even a full time trader. I thought it wise to obtain some insight from some successful traders; isn't the "plan" just some rules and goals to help keep you an the right track?
i am certain there are millionaire traders without trading plans just as there are bankrupt traders with trading plans. having, or even following, a trading plan won't produce millions. i think one of the biggest benefits of a trading plan isn't so much the promise of riches but the minimizing of ruin. your edge / strategy will bring you closer to the capital accumulation, while the trading plan helps constrain capital erosion. BTW: though i don't share their status, i have millionaire trader friends. a couple are very up front about having to have a trading plan. another basically has his plan in his mind; he admits to not having a written version, but i've seen his trades - this guy follows his plan relentlessly. another has a very basic set of rules and that's enough for him. keep in mind, most of these guys have traded 20+ years each. also, fwiw, i wouldn't immediately discount what someone suggests merely based on the fact that they may or may not be a full-time trader or even a profitable trader. in trading, and many other areas, i have learned a lot from those who can't or don't successfully practice what they preach. hth take care omni
All this emphasis on plans is misguided. Correct action at the time is the key to trading success, not a "plan". Just like an outdated business plan will fail, so will a fixed trading plan in the ever changing markets. My suggestion is to remain flexible, have self-control, and use what is currently working in the markets by taking correct action. surf