The Single Most Important Element of Successful Trading

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The Single Most Important Element of Successful Trading

Lately, we’ve been looking at the fundamentals of the Hawkeye trading methodology and breaking down the core tools that drive the Hawkeye system.

Today, I want to continue our discussion of trading fundamentals…

And talk about perhaps the single most important element that EVERY trader needs if they want to be successful.

I’m talking about a trading plan.

Now, if you’ve been a Hawkeye trader for a while, you’ve likely seen our training on the 3 keys to a winning trade plan.

If you haven’t seen that training, don’t worry, because I’m going to be detailing the 3 keys for you in upcoming issues.

First, though, it’s important to understand precisely what we mean when we talk about a trading plan…

See, a trading plan is a written set of rules that defines how and when you will place trades.

A trading plan includes the markets that will be traded…

The timeframes you’ll use to make your trade decisions…

The indicators and settings that are applied to the charts that you trade from…

All the rules about how much you’ll risk on any one trade, a.k.a. position sizing…

And, of course, your rules for entering, managing, and exiting each trade.

Now, a trading plan also has some very specific characteristics.

See, it’s not enough to simply duplicate someone else’s trade plan, because every trader has their own unique quirks, preferences and peculiarities.

That’s why the first characteristic of a trade plan is that it’s PERSONAL.

A good trade plan is tailor-made to fit YOU, the individual trader.

But here’s the thing…

As you gain more experience and knowledge from trading over time, you’ll learn things and make discoveries about your own trading that will require you to update your trade plan.

Which means the second characteristic of a trade plan is that it’s a “living document.”

Yes, your trading plan will… and should… evolve over time.

The catch here is that you must only make updates to your trading plan AFTER the market is closed for the day…

And NEVER in the middle of an active trading session.

Now, before we dive into the 3 keys to a winning trade plan, let’s briefly talk about why having a documented plan is so crucial to successful trading.

I like to think about preparing a trade plan like a mountain climber approaches preparing for a major expedition.

I mean, think about it…

Any serious climber looking to scale a challenging mountain has several things in place before their journey ever begins.

Of course, the climber will undergo intense physical training…

They’ll have a map that they’ll study for hours on end, learning the lay of the land and examining all the possible routes to the top…

They’ll research the weather… the terrain… what kind of wildlife they may run into…

They’ll make an exhaustive list of everything they need to pack to make sure they’re equipped for any scenario…

They’ll have an idea of where along the route they’ll be able to stop and rest so they can complete the entire journey…

And they’ll have a journal or a camera they can use to document the journey and recount mistakes they made so that they don’t repeat those same mistakes later.

Well… it’s the same with trading.

See, the mountain climber who fails to carefully plan his expedition will likely encounter disaster.

And the same is true for traders venturing out into volatile markets without a trading plan.

Your trade plan keeps you on course… and helps you avoid traps and hidden dangers along the way.

Now, in the next issue we’ll start breaking down the 3 absolutely critical keys to a winning trading plan…

But in the meantime, if you’d like to learn more about how Hawkeye can help you make better, more informed trade decisions and keep you in line with your trade plan, just click here to view a free training video now!

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