I have just read another set of tips for traders that includes the line: “have a comprehensive plan”.
This is pure nonsense. I intended to start trading with a comprehensive plan, but when I tried to write one, quickly saw that it would be a daft thing to do. Why? Because I would be making a plan for the sake of having a plan, not on the basis of knowledge of the markets — about which I don’t know nearly as much as I will one day. Dr. Brett says a new trader should try out a variety of trading styles. I haven’t done that because I had already given a lot of thought to what kind of trader I would like to be, but I have emphasised different aspects of trading in the past six months and have refined my original method to one that better suits my temperament. I was delighted to see that he is also against new traders starting out with a comprehensive plan.
I think there is a great danger that people will read this kind of advice and barricade themselves into a detailed plan that turns out to have not very much connection to reality. They will then proceed to lose money.