There’s a method to your madness, right? Now that you have your objective in mind and know where you’re going with your trading, it is important to describe how you intend to conduct your trading business in general terms, i.e., your methodology.
Once again, it is important to start with some self-analysis so you know what methodology will work best for you. Here’s some questions that will help:
Next, it’s on to the nuts and bolts of your current level of knowledge. A prime consideration in developing a trading methodology is recognizing how much you know about the markets you want to trade and the factors that drive them. The more you know, and the more you are interested in the subject, the greater care you will be able to take. In addition, consider when these markets are open and whether you will be able to offer them the proper attention at important trading times. Carefully consider these questions when putting together this part of your trading plan:
Example Trade Plan Methodology