Going into anything blind is a formula for your failure. This is especially so when you go into the stock market. There′s an old saying that goes, “Fail to plan and you plan to fail.” Simple words to live by but a lot of people have ignored them and have consequently lost thousands of dollars to the vagaries of the market. If you don′t want to end up losing your shirt on the market, you better start your entry into it by formulating a trading plan.

So, how do we go about doing it then? Well, the foundations of a trading plan is this: what are your objective? How much money do you want to earn? It would be best and easiest to start your plan by setting a definite number for you to aim for every month or maybe weekly. This gives you a specific goal to (more…)