Trading Educators Blog
Checklist, Trading Plan, Track Record
“I review my checklist. It’s a handwritten sheet laminated in plastic and taped to the right-hand corner of my desk where I can’t overlook it. If you have a game plan prepared ahead of time, it can help you find courage in the heat of the battle.” - Marty Schwartz
Yes, I also have a checklist and I look at it every day. On my checklist you can find reminders like “trade only clear signals, no guessing” or “don't try to be right, try to make money” to name only a few. Reminders I've read hundreds of times but they are very important for my trading and I like to read them over and over again.
Do I have a written trading plan? Honestly, not anymore because it became flesh and blood and everything important is now integrated into my checklist. The mechanical part is very much automated but the psychical part needs a reminder every day. That's where my checklist comes into play.
Do you need a trading plan? Yes, absolutely. There is no other way. Only a clear trading plan will tell you how you really do with your trading by making your trading transparent to yourself. A trading plan together with a detailed track record is the only way to enhance in trading. If done the correct way it will give you all the information you need to become a successful trader.
Checklist, Trading Plan, Track Record. Without these tools it will be difficult to make it in the markets!