Today's Quote: “Before anything else, preparation is the key to success.” Alexander Graham Bell

There was a study done a while back that surveyed and followed Harvard College graduates regarding their life and career goals. A random sample of students were surveyed at the time of their graduation. They were asked to show if they had detailed, written career goals. Even at the prestigious school of Harvard, only 6% had these plans in place. This was interesting. However, the real purpose was to see how these students did compared to the rest of their class. At the time of their 20 year re-union, these 6% had amassed more wealth than the rest of the class put together.

During recent wars in the Middle East, or any of the wars America has fought in, we have had detailed war strategies in place. The odds of success would not be good if the orders where given for all pilots to get in their planes and shoot ‘anything that moves’.

All successful business have had detailed business plans in affect that have laid out every action they have taken. Small businesses cannot even apply for financing unless they have a detailed business plan in place. Yes, these plans can change, but until they are changed, they are the plan that is the driving force that keeps the individual, company, or country on the right track and focused on what is important.

While written plans are important in many businesses, they are even more important in trading. Written plans affect not only the conscious mind, but have a large affect on the sub conscious, so that our thoughts, ideas and motivations are all working to the same end. Anyone who has been trading more than a few hours knows that trading is very much a psychological game. You will soon discover that you are your own worse enemy. The trading plan is the answer to how to deal with your psychological demons, by trading in a calm objective way.

Your trading is your business. It is a difficult business and one that needs a strategy, encompassed in a business plan, more than any donut shop or Internet company in the world. Create a business plan for your trading, perfect it over time, but embrace it. Do no trade without it.