My trading plan

Yes – I have written trading plans before, that is, I have tried to write trading plans.
I think yesterday’s post was actually the first time that I have come up with something that address’s the real challenge: silly me – my lack of real time experience and the emotional response to market conditions outside of my experience.

So I decided to take some time this morning before trading to make it formal. Learning progress will be measured to the degree of adherence to the plan.

1. I need to be mentally and emotionally prepared to lose my stop loss 20 times in a row today. How much will I lose on 20 consecutive losses and am I prepared to lose this much? This will govern the day’s trade size.
2. Each candle of the day presents a potential new opportunity. This gives me 78 potential opportunities for every stock for every trading day. My job is to pick the most probable direction. Expect to get it right and to get it wrong.
3. The decision to enter a position needs to include full thought to the risk involved. Am I emotionally and mentally prepared to lose my stop loss amount? What kind of behavior can I expect from this stock? Am I prepared to see the stock move in my direction and then retrace and get stopped? 
4. Exit when the stock has changed directions or if it would crazy not to. This means a stop loss, a stall, a big candle, or a reverse signal .

Not that complicated, but all I can think of for now. Today I trade and measure performance on how well I adhere to the plan.

Oh yeah - and feel free to add/critique however.