Back when I started trading, barely anyone knew what trading was - at least in comparison to now. I mean in Chicago and NYC and a few other "exchange towns" there was certainly a group of people who both knew and profited widely. Nevertheless, before the internet and before broadband data speeds, both the opportunity to trade and the information on how to do it was not very easy to come by.

Back when I started trading, barely anyone knew what trading was - at least in comparison to now. I mean in Chicago and NYC and a few other "exchange towns" there was certainly a group of people who both knew and profited widely. Nevertheless, before the internet and before broadband data speeds, both the opportunity to trade and the information on how to do it was not very easy to come by.

We have the exact opposite now - anyone and everyone can and does trade and it seems as if just about everyone teaches a course on how. The number of discreet educators and systems must be finite but the combinations of systems, approaches and set-ups surely amount to an infinite number. How does one get through all of this info?

It is very easy in this environment to modify one's "system" every time one has a tough day. It is very easy to think what does the next guy know that I don't and go off into tweak-ville.

How does one avoid this never-ending and usually unproductive continual quest? In my opinion, by doing the somewhat arduous work of creating a plan that is realistic and doable.

What does realistic and doable mean? First, it starts with where you are - in skill, in profitability and in personal situation. It identifies the next 1-3 steps along the curve in each area. It also connects each part of the plan to each other - monetary capital, income needs, psychological capital™ and trading experience.

Just like in trading education, it is possible to get overwhelmed in how to go about making this plan - and just leave it to a few vaguely defined set-ups. Doing so doesn't really bode well for a long-term sustainable increase in productivity (which is really profitability).

I continue to believe that the process I learned at IBM - the one of goals leading to objectives leading to strategies leading to tactics is the best, most comprehensive and clear way to plan. It is painful to make yourself do the thinking - but once done pays off for months and years to come.