A Trading Plan Template Can Make the Difference

Just as you wouldn't tempt to drive across the country without some sort of map, you shouldn't contemplate entering the stock market without a trading plan.A well designed trading plan provides you with a road map to achieve your financial goals as a trader. It also enables you to measure your growth as a trader both in the short and long term.Common sense would tell you that it is better to trade with a plan than without one. But the vast majority of novice and intermediate traders and investors will buy and sell stocks without a stock trading plan.The lack of a trading plan is one of the biggest differences between a novice, unsuccessful or struggling trader or and investor and the profitable traders and investors who have incredible, consistent success in the stock market. Creating a trading plan does not have to be a difficult task. Often the simplest trading strategies are the most effective. The simpler your trading strategy the more straight forward your share trading plan will be when you record it on paper.Most of us either have our own computer or we at least have access to one. So there is not excuse for not being able to record your trading plan on paper. If you are really keen you could even create a trading plan pdf.So what are some of the main benefits of trading with a trading plan? Well, to start with a trading plan that is designed correctly will be aligned with your trading experience, personality, mindset, risk tolerance, and financial goals.In addition, a trading plan can give you better control of your trading with decisions based on your plan and not on emotion. Your plan will tell you exactly what, when, and how to execute your trading decisions. It will also tell you when you should stand aside from the market when conditions do not suit your strategic edge.Designed right your plan will give you confidence to stick with your plan even during the lean times, particularly when you strike a series of losing trades. Another important feature of you trading plan will be your ability to plot your development as a trader or investor. Properly thought out, your plan should give you a suitable benchmark against which you can track and measure your progress, both from a financial and personal growth perspective.Remember, if you want to serious about your trading, you need to be able to compete with the market professionals. If you think you can get away with competing in the financial markets without a robust trading plan - your fooling yourselfIf you are not to sure where to start or think that it all sounds to difficult, do not despair. The best way to construct your complete trading plan is to start with a trading plan template. That way you are assured of covering all the critical elements of a robust trading plan.You can find them in many trading books. Stock trading plan templates are also available on many websites. But be warned. As with many things in life, "you get what you paid for". For that reason be wary of cheap or free trading plan templates. They are more often than not incomplete, flawed or part of some trading company's strategy to get you onto their mailing lists.Spending a few dollars to purchase a trading plan template or handbook is more than likely going to be money well spent. A decision that will repay its self many times over.