In “Super Trader”, Van K. Tharp writes that there are 5 Steps to Consistent Profits/Peak Performance:
1. Work on Yourself.
– Personal beliefs about yourself (strengths & weaknesses)
– Market beliefs
2. Develop a Business Plan as a working document to guide your trading.
– Work on yourself (see above)
– Understanding the big picture influencing the markets you trade
– Markets, instruments and timeframes you will trade
– What are your daily procedures?
– What is your personal education plan?
3. Develop Several Strategies that fit your view of the big picture and understand how each of them will perform in various market types.
– Develop a trading system that fits each market type you plan to trade that fits you
– Technical vs fundamental?
– Trend following vs scalping?
– Entries
– Exits
4. Thoroughly understand your objectives and develop a position sizing strategy to meet them.
– Position sizing models
– R-multiples
5. Monitor yourself constantly and minimize the number of mistakes you make.
– KISS
– Are you following your rules?
1. Work on Yourself.
– Personal beliefs about yourself (strengths & weaknesses)
– Market beliefs
2. Develop a Business Plan as a working document to guide your trading.
– Work on yourself (see above)
– Understanding the big picture influencing the markets you trade
– Markets, instruments and timeframes you will trade
– What are your daily procedures?
– What is your personal education plan?
3. Develop Several Strategies that fit your view of the big picture and understand how each of them will perform in various market types.
– Develop a trading system that fits each market type you plan to trade that fits you
– Technical vs fundamental?
– Trend following vs scalping?
– Entries
– Exits
4. Thoroughly understand your objectives and develop a position sizing strategy to meet them.
– Position sizing models
– R-multiples
5. Monitor yourself constantly and minimize the number of mistakes you make.
– KISS
– Are you following your rules?