How to Approach Trading - Part 3
How to Get Started: I've seen many different trading plans. Whether they're two paragraphs or ten pages long, they put forth a way of looking at the market and they attempt to create some framework for approaching the markets. A good plan will include a well-tested strategy, a trading method, or a setup. Having a positive expectation should allow you to have the confidence to start trading your plan. Confidence in your plan will lead to the discipline necessary to continue trading despite occasional losing periods. Disciplined execution of your plan leads to returns over time that can be consistent with your testing.
But you may ask, "How do I get started?" First you'll need a well-tested strategy, method, or setup. There are several ways to accomplish this. You can take a course on trading, or buy a commercially available method. You can use charting and analysis software to start sifting through the available data until you find a combination of price movements that work. Or, you can work with a professional who has already done the work and can help point you in the right direction.