Annual business plan And finally, in this chapter I want to give a fast look at an annual plan. First, you will need this kind of plan, since when a year will pass you will have to adjust your view on trading. Second, this kind of plan is strongly preferable for any trader both newbie and experienced. Still, this is a common-type plan and not detailed trading plan. Since one year has passed, there some changes that could appear that demand adjustments. Maybe trading at some markets, patterns gave you worse results than you’ve expected, maybe you’ve known something, that you would like to continue and so on. Still do not overvalue the meaning of this plan. It should be natural and act as a sort of road map that could lead your move in financial markets’ journey. The most important thing is to follow the plan. First it develops good-trading habits; second it will let you return to basics if you will be driven away by market’s flow. Here are approximate questions that could form your annual plan: 1. What markets or assets should I trade in the coming year? For instance, if you trade three pairs, you may focus on just two or even single pair, if the previous results are best with it; 2. You have to develop a trading plan for each market or asset. We will speak about that trading plan in a later part of this current chapter. The point is that on some markets you’ve got better results trading different patterns and time frames compared to another market. So, you have to create a trading plan for every market. For example, on the market you can trade on a weekly basis by MA technique, while of EUR/USD daily mostly by Harmonic patterns and so on – depending on previous results; 3. As a continuation of point 2 – we have to determine what time frames we should trade; 4. Some plan on education – study some new strategy, visit a seminar, dive into study of some other methods, improve risk management etc.; 5. Take a look at your lifestyle, especially if something important has happened in the previous year that has made an impact on trading. Even if this is not the case you may find out, that in some days you’ve performed better than the others, you can trade better after some rest, you perform differently in the morning than in the evening, in days when you’ve visited grandma, etc. According to that, you can make some adjustment on your life-style, include or exclude some events, say, gym. It will help you to estimate your own trading schedule. For instance, you can come to conclusion that if you trade three weeks in a row you start to make mistakes. So, you need 1 week of rest for every three weeks of trading. 6. Review of business plan – assess your expenses, and forecast for the next year, as we’ve shown in business plan example; 7. The last thing is creating your goals for coming year. This is obvious that they will be based on current results. For instance, if you were able to earn 20% annually, you may appoint some higher target. But what is more important – you have to specify how you want to reach them. For instance, you may exclude some markets that you traded with and lost. Maybe you will improve your risk management system, so you will be able to trade larger lots, maybe you see a growing trend in your wining/loss trades ratio . There could be very different sources of improvement. P.S. This lesson was written by Sive Morten, who has been working for a large European Bank since April of 2000, and is currently a supervisor of the bank's risk assessment department. Sive's knowledge of forex market and banking industry is vast and quite complete. If you have any specific questions about forex, banking industry, or any other financial instruments, please post them on the next page and Sive should answer soon. Note: FPA ranks are earned in the battles against scam, not in the classroom.