What is the first thing that you do when you want something with an intense desire? When you want it so bad you can taste it? When you can feel the desire in your bones? When you’re driven by a desire that leaves you hungry for it? With this kind of emotionally passionate focus, you automatically begin to think about “how” you can get it. In other words you begin to plan. The “how” or “plan” charts the way to achieving the desired item…no matter what it is and no matter how small or large. Planning is essential to the process of achievement and without it you would come as close to accomplishing the goal as you would if you were to be blindfolded and spun around and given a bow and arrow to hit a bullseye 100 yards away. Trading requires planning at both the macro level (the big picture or business plan) and the micro level (the small picture or plan for every trade).

Now, many of you reading this article are trading without a business plan. That’s very unfortunate … for you! If you don’t have a macro trade plan and you are trading then you are “out-of-sequence” in your trading process. Your success as a trader depends on a number of items that include market knowledge, a set of rules, money management and risk management, and self-discipline to explicitly follow these trading necessities. Your plan would include all of these elements and others to construct a vehicle that is designed for getting the results you want. Without a macro trading plan or business plan you lack the “big picture,” the overview map that holds the “how” you would proceed. Furthermore, what are you telling yourself to justify not having a macro trade plan? Here are some examples:

I have no idea how to write one,

I don’t consider it necessary,

It’s boring and time consuming,

Successful traders don’t have plans

I have a mental plan.

Of course, there are all types of excuses, but the bottom line is that they are excuses, and they are standing between you and setting yourself up for getting effective trading results.

Let’s take a look at some of the essentials that would go into your macro trade plan.

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