Hi Cool Clubbers,

I'd like to start a thread discussion. Topic: Trading Plans.

Everything I've read about trading stocks says to develop a plan and stick to it. A plan should be simple, clear and able to perform in an up market, a down market and a side ways market. And if you just click here, we'll take care of everything via tweets, emails, etc for, not $129.99, not $69.99 but only four easy payments of $39.99! Here's your sign.

I have issues - I don't see how a simple, clear plan will address individual stocks in an up, down or sideways environment with radical stimulus that can be barely recognized or where the implications are clear enough to make informed, successful decisions. The variables are not unlimited but the permutations nearly are unlimited.

I've been using the COOL CLUB Tools and have been reviewing and attempting to implement the guidelines put forward by Paul when I trade options... but I don't think I could call what I've been doing as "following the plan". Surely not on positions like AAPL or SSYS.

For each of my trades, I write out what I am doing and why I am doing it in that manner - puts or calls. I identify my potential outcomes and then initiate the trade. If I plan on being wedded to a stock for multiple trades, then I write out my "plan" for that stock. I try to understand the various stimulus that will affect the price (not very good at this for now) and then set my exposure level to a comfortable amount and trade. Sometimes I actually do it in this order!

So as a topic of discussion, I'd like to know what more experienced Cool Clubbers have as "trading plans".

Hope everyone is warm and dry this January... storm heading East in two to three days.

Malcolm

Hi Malcolm,

Good topic.

I try and keep things simple. First, at the start of the year, I add up the total value of my savings and retirement accounts. I increase this amount by 10% and use that as a goal to try and achieve by the end of the year. Hopefully I will get there by investing, but if not, I will try and save more and spend less.

For my investing, I have a "stable" of companies that I follow. I make 1 year sales growth, net margin and P/E projected growth estimates for each of them and use it to calculate a projected one year return and projected 1 year price. Each quarter, when earnings are announced, I review the new information and use it to review and revise my judgements appropriately. I use these to make stock investing decisions and I track the total values of my portfolios against my 10% target.

I use my projected prices when I'm for looking for options opportunities. It see them as a way earn some extra "dividends" on cash. I've also found they help me get into and out of stocks when I should.

My issue is staying up to date and disciplined about the whole process. I don't find it really takes a lot of work (I don't find I need to continually be looking for new companies to invest in), but I find it takes a consistent level of attention.

Great input everyone! Keep it coming - what is on you checklist? Do you track the momentum and trend indicators on your option journal? What about review of your trade? etc.

One thing I find I have to pay more attention to is the THE CALENDAR... being recently retired, and not one to take a newspaper, I often find I know the day, but not the date. And it isn't easy to combine the information into one source. So I quickly slapped together this document and will see how it fits into my process. It is a word document that has the 2013 calendar with some dates already posted (expiration, holidays). What I'll do is print one for my stock file and then use it to track that stocks important dates (earnings announcement, ex-dividend, dividend payment, STO, BTC, Exp, etc). That way I'll only have to go to one page to update, revise or check on my stock while planning my trade - right there in my stock folder.

Again, keep the line moving, this is good.

Malcolm

Hi Malcolm,

Good topic.

I try and keep things simple. First, at the start of the year, I add up the total value of my savings and retirement accounts. I increase this amount by 10% and use that as a goal to try and achieve by the end of the year. Hopefully I will get there by investing, but if not, I will try and save more and spend less.

For my investing, I have a "stable" of companies that I follow. I make 1 year sales growth, net margin and P/E projected growth estimates for each of them and use it to calculate a projected one year return and projected 1 year price. Each quarter, when earnings are announced, I review the new information and use it to review and revise my judgements appropriately. I use these to make stock investing decisions and I track the total values of my portfolios against my 10% target.

I use my projected prices when I'm for looking for options opportunities. It see them as a way earn some extra "dividends" on cash. I've also found they help me get into and out of stocks when I should.

My issue is staying up to date and disciplined about the whole process. I don't find it really takes a lot of work (I don't find I need to continually be looking for new companies to invest in), but I find it takes a consistent level of attention.

Laurie Frederiksen
Invest with your friends!
www.bivio.com

Become our Facebook friend! www.facebook.com/bivio
Follow us on twitter! www.twitter.com/bivio
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On Fri, Jan 25, 2013 at 7:00 AM, Susan Tanoe <susanlt@gmail.com> wrote:

Hi Malcolm,

My trading plan is fairly simple but does not mean I do not keep updating it. It ususally targets the basic items such as what I want my return to be overall for trading options. My do's and don'ts for trading CSPs and CCs such as not trading CSPs across an earnings event. I also have a trading journal which is what I suspect you are calling your trading plan and this is where I detail the items that you are talking about with my targets for each trade and my preferable outcome. I like Charles used both Guy's and Lynn's trading plans as a starting point.

Susan

On Thu, Jan 24, 2013 at 5:19 PM, Malcolm Myles <malcolm@mmyles.com> wrote:

Hi Cool Clubbers,

I'd like to start a thread discussion. Topic: Trading Plans.

Everything I've read about trading stocks says to develop a plan and stick to it. A plan should be simple, clear and able to perform in an up market, a down market and a side ways market. And if you just click here, we'll take care of everything via tweets, emails, etc for, not $129.99, not $69.99 but only four easy payments of $39.99! Here's your sign.

I have issues - I don't see how a simple, clear plan will address individual stocks in an up, down or sideways environment with radical stimulus that can be barely recognized or where the implications are clear enough to make informed, successful decisions. The variables are not unlimited but the permutations nearly are unlimited.

I've been using the COOL CLUB Tools and have been reviewing and attempting to implement the guidelines put forward by Paul when I trade options... but I don't think I could call what I've been doing as "following the plan". Surely not on positions like AAPL or SSYS.

For each of my trades, I write out what I am doing and why I am doing it in that manner - puts or calls. I identify my potential outcomes and then initiate the trade. If I plan on being wedded to a stock for multiple trades, then I write out my "plan" for that stock. I try to understand the various stimulus that will affect the price (not very good at this for now) and then set my exposure level to a comfortable amount and trade. Sometimes I actually do it in this order!

So as a topic of discussion, I'd like to know what more experienced Cool Clubbers have as "trading plans".

Hope everyone is warm and dry this January... storm heading East in two to three days.

Malcolm

Hi Everyone,

Great heady days in the market these days... everyone's boat floats when the Tide rises!

I'm still thinking about the topic of Trading Plans and I've think that I can split it into two parts: The Plan and The Trade. The Plan has your goals, strategies, and guidelines. The Trade has the pertinent information about the specific trade. My trades include the fundamental and technical analysis, and prospective real returns for each trade.

GG Werner's Plan included reference to Allan Ellman's spreadsheet. The Blue Collar Investor web site offers the free use of their spreadsheet for analyzing trades. I've used it a couple of times for my current open positions and combined with the Cool Tool spreadsheet I can see how Allan Ellman's spreadsheet is going to be beneficial in my future trades. My trades will depend upon using these resources to determine the value of taking on the position (and will feed into each of my trade reports).

Has anyone subscribed to the Blue Collar service and found it beneficial in their trading program? I wonder because he appears to offer a substantial package for the cost.

Thanks,

Malcolm

Great input everyone! Keep it coming - what is on you checklist? Do you track the momentum and trend indicators on your option journal? What about review of your trade? etc.

One thing I find I have to pay more attention to is the THE CALENDAR... being recently retired, and not one to take a newspaper, I often find I know the day, but not the date. And it isn't easy to combine the information into one source. So I quickly slapped together this document and will see how it fits into my process. It is a word document that has the 2013 calendar with some dates already posted (expiration, holidays). What I'll do is print one for my stock file and then use it to track that stocks important dates (earnings announcement, ex-dividend, dividend payment, STO, BTC, Exp, etc). That way I'll only have to go to one page to update, revise or check on my stock while planning my trade - right there in my stock folder.

Again, keep the line moving, this is good.

Malcolm

On 1/25/2013 6:24 AM, Laurie Frederiksen wrote:

Hi Malcolm,

Good topic.

I try and keep things simple. First, at the start of the year, I add up the total value of my savings and retirement accounts. I increase this amount by 10% and use that as a goal to try and achieve by the end of the year. Hopefully I will get there by investing, but if not, I will try and save more and spend less.

For my investing, I have a "stable" of companies that I follow. I make 1 year sales growth, net margin and P/E projected growth estimates for each of them and use it to calculate a projected one year return and projected 1 year price. Each quarter, when earnings are announced, I review the new information and use it to review and revise my judgements appropriately. I use these to make stock investing decisions and I track the total values of my portfolios against my 10% target.

I use my projected prices when I'm for looking for options opportunities. It see them as a way earn some extra "dividends" on cash. I've also found they help me get into and out of stocks when I should.

My issue is staying up to date and disciplined about the whole process. I don't find it really takes a lot of work (I don't find I need to continually be looking for new companies to invest in), but I find it takes a consistent level of attention.

Laurie Frederiksen
Invest with your friends!
www.bivio.com

Become our Facebook friend! www.facebook.com/bivio
Follow us on twitter! www.twitter.com/bivio
Follow Us on Google+

On Fri, Jan 25, 2013 at 7:00 AM, Susan Tanoe <susanlt@gmail.com> wrote:

Hi Malcolm,

My trading plan is fairly simple but does not mean I do not keep updating it. It ususally targets the basic items such as what I want my return to be overall for trading options. My do's and don'ts for trading CSPs and CCs such as not trading CSPs across an earnings event. I also have a trading journal which is what I suspect you are calling your trading plan and this is where I detail the items that you are talking about with my targets for each trade and my preferable outcome. I like Charles used both Guy's and Lynn's trading plans as a starting point.

Susan

On Thu, Jan 24, 2013 at 5:19 PM, Malcolm Myles <malcolm@mmyles.com> wrote:

Hi Cool Clubbers,

I'd like to start a thread discussion. Topic: Trading Plans.

Everything I've read about trading stocks says to develop a plan and stick to it. A plan should be simple, clear and able to perform in an up market, a down market and a side ways market. And if you just click here, we'll take care of everything via tweets, emails, etc for, not $129.99, not $69.99 but only four easy payments of $39.99! Here's your sign.

I have issues - I don't see how a simple, clear plan will address individual stocks in an up, down or sideways environment with radical stimulus that can be barely recognized or where the implications are clear enough to make informed, successful decisions. The variables are not unlimited but the permutations nearly are unlimited.

I've been using the COOL CLUB Tools and have been reviewing and attempting to implement the guidelines put forward by Paul when I trade options... but I don't think I could call what I've been doing as "following the plan". Surely not on positions like AAPL or SSYS.

For each of my trades, I write out what I am doing and why I am doing it in that manner - puts or calls. I identify my potential outcomes and then initiate the trade. If I plan on being wedded to a stock for multiple trades, then I write out my "plan" for that stock. I try to understand the various stimulus that will affect the price (not very good at this for now) and then set my exposure level to a comfortable amount and trade. Sometimes I actually do it in this order!

So as a topic of discussion, I'd like to know what more experienced Cool Clubbers have as "trading plans".

Hope everyone is warm and dry this January... storm heading East in two to three days.

Malcolm