Two weeks ago, we talked about review. Today, we talk about planning ahead.
Review shows us where we've been. Planning shows us where we're going.
You can review what you did right and wrong all day long. But without a plan, you'll repeat your mistakes and forget to repeat your wins.
My son is working toward becoming a pilot. He's talented, coordinated, and sharp - the kind of kid I'd trust behind the wheel at 14 over his older brothers.
He has every natural gift to succeed. What he's missing is a concrete plan with deadlines.
He studies sporadically. Schedules flights here and there. He reviews what he got wrong and what he got right.
Progress? Sure. Consistent progress? No.
I told him something recently. Saying you want to fly freight isn't a plan. That's like saying you want to go to Disneyland.
It's an idea. A hope. Not a plan.
To actually get to Disneyland, you need directions. You need a departure time.
You need to know where the gas stations are. You need to know your car won't break down halfway there.
You should buy tickets, book a hotel, and have the money to pay for it all. Just saying you'll go doesn't get you there.
But if you plan it out and leave when you said you would? Even with detours and extra pit stops, you'll arrive at the most magical place on earth.
Flying freight works the same way.
He needs to map the path: private license, instrument rating, commercial, flight hours, CFI certification, then the job interview. He needs a timeline.
He needs to review what keeps him safe - checklists, study material, past lessons learned. He needs his flight school lined up and a way to pay for it.
Without a plan, he might be sitting here in ten years still saying he wants to be a pilot. With a plan, delays might slow him down, but he'll arrive.
The parallels to trading are obvious.
Before you reach trader's Disneyland, you need a path. That means a trading plan and an education plan - what you'll study and practice to improve.
Set a schedule. When will you trade each day or week? When do you want to hit your benchmarks?
Review what keeps you safe. Evaluate your wins and losses. This requires the trade tracking we've discussed before.
Set up your environment. Get your brokerage accounts ready. Configure your platforms the way you trade best.
And figure out your financing. Trade appropriately for your account size.
I tell our traders all the time: good trading is boring. Going to the bank is boring. We pay for entertainment.
Don't spend your trading capital chasing excitement in the markets.
If you choose your path, review what keeps you safe, set a schedule, prepare your setup, and trade within your means - you have much higher odds of reaching your destination.
Even with a detour or two.
The financial "happiest place on earth" awaits those who plan the journey.
Blake Young
Senior Strategist, TheoTrade