My trading plan

A capitalist needs a trading plan to know when and how to act in the capital markets. A trading plan needs to be thoroughly designed to fit the capitalist's personality, psychology and risk affinity. By studying topics like economics, finance, trading and by trial and error. I gained insight in what kind of trading that fits my personality and is profitable for me personally.

A trading plan is composed of two components. A trading method which describes the general style of trading and a trading system which describes the detailed rules for when and how to enter and exit a trade.

My trading method

  • OMXS30 stock index trader
    I only trade the domestic Swedish OMXS30 large cap stock index. It is the most analyzed and the most domestically traded stock index.
  • Trend following trader
    I only react to price movements, I want to be invested in a objectively proven favorable trend until the trend is objectively proven to be over.
  • Long only trader
    I only trade based on the speculation that prices will be higher in the future.

My trading system

  • Market entry
    The price is making new highs.
    The quarterly earning reports have a positive influence on the price.
    The days with price increase have relatively high volume.
    The MA50, MA100 and MA200 are have a positive slopes.
    The On Balance Volume indicator is making new highs.
    The MACD is showing positive momentum.

  • Market exit
    The price has fallen below the Chandelier trailing exit level.