The final step to preparing for live options trading is to develop a trade plan. Much like a business plan, a trading plan needs to outline the strategy and direction, as well as provide guidance for the investor. Failure to take the time to develop a trading plan will lead to almost certain failure.
Option trading is difficult. If it were easy, everyone would make money, which actually means no one would make money! Only the strong, dedicated, and disciplined will ultimately succeed. We have taken the time to identify attributes among successful option traders that will give investors the most likely chance for long-term success in the options market. The following lessons will make break up the creation of a trade plan into steps. Here is a general outline:
01. Trading Plan overview and mission statement
02. Detailed analysis of each trading strategy
03. Identification of underlying stocks
04. S.W.O.T. Analysis
05. Conclusion
Click here to download the Trade Plan Template (Requires Microsoft Word 2007 or above)
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