3 Jan 2018

Building a Trading Plan

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Building a Trading Plan - The Bubba Show
Todd "Bubba" Horwitz on Liberty Talk FM - Image Rotator Photo

BY: Todd Horwitz, Host & Senior Contributing Analyst
PUBLISHED: January 03, 2017

Nasdaq Soars, While Bonds Get Clobbered

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Today on The Bubba Show, Bubba talks about the crazy market action on Tuesday and gives his interpretation as to what happened. The Nasdaq soared, while the other indices lagged behind. Gold continued making new recent highs, squeezing the shorts, and Bonds got clobbered. Oil remains in a fear pattern and should break down once the fear subsides.

Trading plans are next up, as Bubba shares a recent webinar discussing how to put a trading plan together. Trading is a business and needs to be treated as one. Bubba breaks down may of the steps when building a trading plan. The first step in the plan is to record your trades and daily results.

When building a trading plan, it’s important to understand the risk and reward of the trade you are making. Bubba tells listeners that they must treat trading and investing as a business. Markets are not a casino, if you want to gamble go to Las Vegas. 

Learning how to take profits is as important as any part of trading. Bubba uses an example of how traders are often too greedy when they should be selling and too fearful when they should be buying. Having a plan helps alleviate the problems that come in play when it comes to emotion.

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Todd Horwitz began his career in the financial industry as an option market maker at the Chicago Board of Options Exchange in 1982 and was one of the founding traders in the SPX pit. He is an active member of the am currently a member of the Chicago Board of Trade.