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“I’m still working 9 to 5. I don’t have much time and money to trade”. Here’s my 3-minute master breakdown of trading styles. Planning for your trading career should always start with the cardinal question - WHY. Ask yourself WHY you want to become a trader. How's that so? "If the Why is big enough, the How becomes easy" It's a part of your trading plan design. As a rule of thumb, you can use the 5Ws + 1H framework. Answer these: • Why do I need to improve? • Who will be involved? • What do I want to achieve? • When should it happen? • Where should I do it? • How can I make the change? Managing your finances is subject to different types of biases. Learned behaviors and emotional attitudes will disturb your rationale and deceive you, leading to failure. The prospect theory says traders are generally loss-averse and will act irrationally to avoid losses. Right before selecting your suitable trading strategy, you need to accept one thing. Profits are not guaranteed, but losses are. No holy grails exist. It's statistically impossible to be right all the time with your trade bets. Whichever path you choose, prepare for losses. Traders will, typically, choose between 4 types of tactics: • Trend-following, • Mean reversion, • Chart pattern recognition, • Exogenous signal. And for any of those, you'll need to determine 6 system factors. Every trading system must include these: • Markets - what to buy/sell • Position sizing - how much to buy/sell • Entries - when to buy/sell • Exits - when to get out of a winning position • Stops - when to get out of a losing position • Tactic - how to buy/sell Then, this is where you decide what's the most suitable style for you. Based on your finances, availability, goals, personality, and resources, pick an overall regime or strategy: * BUY-AND-HOLD * POSITION TRADING * SWING TRADING * DAY TRADING * SCALPING Select only one. Most traders will likely fail to beat the buy-and-hold strategy. Outperforming the market is difficult, but proven possible with the help of a technical toolkit and risk control regime. The rule of thumb says no more than 2% account risk at a time can help avoid ruin. Positioning yourself in the trend direction is the most profitable. Despite most trend followers will get ~30% win rate, the wins make up for all the losses. You'll need to choose one: * many small wins + few large losses (range) * many small losses + few large wins (trend) Buying breakouts in the uptrend, and selling breakdowns in a downtrend yield the best results, when breakouts are confirmed (filtered). Confirm breakouts with any of these: • PERCENTAGE FILTER • VOLUME • TIME FILTER • VOLATILITY Like I said, most traders should pick only one trading style. The majority will do best if they just buy and hold. Position trading with trend breakouts should work if you have enough time for it. Mean reversion (range) trades are limited in nature. Easy to get rekt there. Putting everything together: > define goals: 5W+1H > accept losses will come > define strategy > define system > choose technique > use 2% risk per trade > decide buy-and-hold or position trading > train discipline That's it. That's how you get to discover your one suitable trading plan. Hope it helps! Before I go: now, that I’ve provided you with so much value and didn’t charge you a single penny, you might want to know that it’s just a glimpse of what I’m going to give you for free during our virtual summit - Free Trading Congress (Nov 15-21). If you want access to free trading education to get back on your feet faster, even with no psychology experience (free access to my premium trade group included), just join the waitlist. Declare your interest here: bit.ly/freetradingcongress Many traders need help now. If you enjoy this guide, show it to your friends, tag them in a comment, let them see it. It will also help if you drop a like and retweet this tweet. God bless. Thanks!