In this lesson, Irek provides his insights and opinions as to when and why should you evolve your trading plan.
- Never make changes because it seems like a different style will yield better results (it won't)
- What will yield 'better' results is sticking to one trading plan that suits your style/personality for a decent amount of time (i.e. 6 months) to allow the probabilities to play out
Examples of major adjustments / changes to your plan (these are not minor tweaks):
- Switch from day trader to advanced day trader, or even hybrid, building on the personality you’ve already previously chosen… i.e. building on top of the day trader profile, because that is your style
- Implement other major adjustments, such as switching from a live execution to entry order execution on IBOs and CBOs
- If you’re starting off very basic, it can include adding another strategy, such as ACBs or ABOs... make sure in this case, you build a whole new case study
- It can also mean increasing percentage risk, or even diversifying your plan into other markets
- Maybe you’ve already been day trading for 3 years, and have had a major lifestyle change (I.e. start a family, move to another country), and you may want to switch to another style such as swing trading or even longer-term active investing
- In this case, don’t let your previous experience go to waste… put everything into one major case study, with all your major insights, your previous trading plan etc.
- This way, if you ever want to switch back to a day trader (even for a month or two) then you don’t have to start from scratch, as you’ll have everything all together in the format of a case study... this can act as your refresher/point of reference in the future if needed