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Crafting a 2021 Trading Plan with Sheridan Options Mentoring

Introduction to Strategic Trading

Embarking on a trading journey without a plan is like sailing without a compass. This guide, developed in collaboration with Sheridan Options Mentoring, will walk you through creating a comprehensive trading plan for 2021 and executing it over three weeks.

Understanding the Importance of a Trading Plan

Why You Need a Trading Plan

A trading plan helps traders maintain discipline, manage risks, and systematically approach their trades, increasing the likelihood of achieving consistent profits.

Components of a Solid Trading Plan

• Goal Setting
• Risk Management Rules
• Entry and Exit Criteria

Setting Realistic Trading Goals

Short-Term vs Long-Term Goals

Define what you aim to achieve within three weeks and how it fits into your broader trading aspirations.

Measurable and Achievable Objectives

Setting SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals to track your progress effectively.

Risk Management Strategies

Determining Risk Tolerance

Understanding your risk appetite and how it will dictate the trades you are willing to engage in.

Use of Stop-Loss and Take-Profit

Implementing these tools to protect your investments from significant losses and to lock in profits.

Developing Entry and Exit Criteria

Technical Analysis for Entry Points

Utilizing charts and indicators to identify the optimal times to enter a trade.

Setting Clear Exit Points

Defining when to exit a trade, whether in profit or loss, to avoid emotional decision-making.

Choosing the Right Instruments

Selecting Tradable Assets

Focusing on options that align with your market analysis and trading goals.

Diversification

How and why to diversify your trading portfolio to spread risk.

The Role of Sheridan Options Mentoring

Expert Guidance

How mentoring with seasoned professionals can dramatically improve your trading outcomes.

Learning from Experienced Traders

Gaining insights from those who have successfully navigated the markets can provide invaluable lessons.

Documenting and Reviewing Your Trades

Keeping a Trade Journal

Document every trade you make: the reasoning, the outcome, and the lessons learned.

Weekly Review Sessions

Set aside time each week to review your progress and adjust your plan as necessary.

Executing the Trading Plan

Live Trading Implementation

Taking your plan live and beginning to trade based on the strategies you have developed.

Monitoring Market Conditions

Keeping an eye on the market for significant news or changes that may impact your trading.

Adjusting Your Plan Based on Performance

What to Do If You’re Off Track

Strategies to realign your trading if things aren’t going as planned.

When to Stick to Your Plan

Understanding when staying the course is essential, even when facing adversity.

Conclusion

Making and following a trading plan with Sheridan Options Mentoring for three weeks can set the foundation for disciplined, profitable trading. By adhering to the structured approach outlined above, traders can minimize risks and maximize their chances for success.

FAQs About Making a 2021 Trading Plan

1. How detailed should my trading plan be? Your trading plan should be detailed enough to provide clear guidance but flexible enough to adapt to unexpected market conditions.
2. Can I use this plan for trading other years? Yes, while specific market conditions may change, the fundamental principles of a solid trading plan are timeless.
3. What if my trading plan fails in the first week? Use this as a learning opportunity to adjust your plan, focusing on what the market is telling you.
4. How often should I consult with my mentor? Regular consultations, especially weekly, can help keep you on track and make necessary adjustments in real time.
5. Is it necessary to have a mentor like Sheridan Options Mentoring? While not necessary, having a mentor can accelerate your learning curve and help you avoid common pitfalls.