Brainy's Share Market Toolbox (public information)

Investing / Trading Plans and Strategies

Having an investing/trading plan is very important. Likewise, having one (or more) strategies.

You are here: Share Market Toolbox > Share Market > Investing / Trading plans and strategies Related links: Robert's Philosophy; Share Market GEMs; Share-Market-Ready; Paper Trading; Support and Resistance;  Trend-spotting; Funda-Technical Analysis; Sensible Investing; Contrarian Investing Redefined; Technical Analysis;

More Information eBook Articles - Share Market Toolbox Members can see more details in the following eBook Articles: TA-2200 "Dow Theory"  Robert writes information from time to time about the market and investing. If you are not a Toolbox Member, you can register to receive useful free information as it is published. Click here to register interest For Email Marketing you can trust Privacy ensured, unsubscribe anytime. See the Testimonials - the things that people say about the Toolbox and more. The Share Market - more information about the market and investing and trading. Brainy's Share Market Toolbox The toolbox is an arsenal of weapons to help you tackle the share market.   See a list of contents on the Toolbox Gateway page. Robert Brain provides various support to both new and experienced traders and investors. Who is Robert Brain? And whatever you do, beware of the sharks in the ocean! Do I really need a plan, or a strategy? Without going into the gory detail, it is very important to have some sort of investing or trading plan to describe why you are about to make some investment or trading decisions. And it is more important to have a documented strategy. By having a plan and strategy clearly documented, you are able to perform some testing on past information to gain a feel for how successful the intended strategy might be. It also means that when certain conditions arise, your actions are already described in the plan, and there will be no need to stop and dither and procrastinate about "should I do this? or shouldn't I do it?". The strategy ought to contain some risk analysis that describes what you will do when a certain high-risk condition occurs. Then a lot of the emotion is removed from the resulting actions. This is explained in Robert's free eBook (PDF) Article ST-2400, "Trading Styles, Plans and Strategies" (freely available to Toolbox non-Members). What is the difference between a plan and a strategy? The industry professionals don't have a universally agreed standard definition, but the following simple definitions seem to be in broad acceptance: Investing / trading plan - Regarding the field of investing or trading, the plan is a description of things like: what, how and why. It helps define the purpose, objectives, scope and boundaries for the activity. Strategy - This is the detail regarding entry condition and exit criteria. That is, it clearly describes the criteria that you will use to select your investing position, as well as the conditions that will trigger a close of the position. For investing/trading in the share market, this is basically the criteria that will be satisfied to cause a share purchase (and which might be based on fundamentals, or on technical analysis). So, the plan describes the sort of investing or trading you are thinking of doing, and how you want to go about it, and what is the underlying reason why you want to do it, and where the funds will come from. By considering these aspects you will clear some smog from your thoughts, and start to crystallise your ideas. More information For more information on this topic, see Robert's eBook (PDF) Articles here in the Share Market Toolbox, some of which are restricted - for subscribing Toolbox Members. Preparation ST-2000 "Share Trading / Investing - Preparation"  ST-2410 "Trading Styles"  ST-2420 "Trading Plans and TEMPLATE"  ST-2430 "Trading Strategies and TEMPLATE"  See more eBook Articles about the preparation... Strategy concepts and ideas ST-6115 "Strategies for entry and exit" (free) ST-6200 "Trading strategy considerations" (free)   ST-6210 "Trading strategy - Volume and liquidity"  ST-6215 "Trading strategy - Finding liquid stocks"  ST-6250 "Strategies - GICS, indexes, sectors"   See more eBook Articles regarding sample strategies... Sample strategies ST-6400 "Sample trading strategies - introduction"  ST-6405 "Sample strategy - Robert's Weekly Watchlist"   ST-6407 "Robert's JB+AH Strategy"  ST-6410 "Sample trading strategy - Weinstein"  ST-6420 "Sample trading strategy - Alan Hull" (free) ST-6430 "Sample trading strategy - Daryl Guppy" (free)

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Last revised: 22 September,  2016.