Important reminder that on Monday, February 21, 2011 the U.S. stock market equities and options markets will be closed for holiday to celebrate President’s Day (sometimes known as George Washington’s birthday).
A stock trading plan is a strict set of rules and actions which formulate your stock trading strategy. A stock trading plan defines when to buy and sell stocks and at what prices. Every trade you make should be governed by your trading plan.
A stock trading plan is very similar to a company Business Plan. A Business Plan is a device for the owner which sets out how the company intends to operate the business. A business plan is also a road map to tell investors and others how you expect to get there. A business plan covers all aspects of the company, from overall strategy and marketing to finances and the company’s goals. In the same fashion, a trading plan lays out how the trader will make trades – the time, price, volume, and news are all essential components of the trade. While your trading plan may not necessarily be for others, it is still your own road map to tell yourself, and reaffirm to yourself, how you expect to get there. Include goals in your business plan: 3 month, 6 month, 1 year, 2 year, 5 year, 10 year, and even 20+ year goals you would like to reach through your trades and investments.
Choosing an online stock broker can be difficult and overwhelming at times. People new to stock trading and investing have many choices and options to consider. Finding the right online broker to meet your needs or requirements can be very rewarding and beneficial, for your portfolio and your peace of mind.