In his book Think and Grow Rich, Napoleon Hill said, “Wishing will not bring riches. But desiring riches with a state of mind that becomes an obsession, then planning definite ways and means to acquire riches, and backing those plans with persistence which does not recognize failure, will bring riches” (Hill 1937).
That same wisdom can be applied to trading. Just wishing will not bring success to a trader. To be successful, a trader has to have an obsessive desire for success, have a definite plan with actionable steps to achieve it, and take massive action with persistence that does not recognize failure.
Successful traders know this well. They have a habit of clearly defining the goals for their trading business and setting up a business plan to guide their actions. In this chapter, we will discuss the habit of defining goals. For now, let's take a look at how establishing a trader's plan will help you succeed in your trading.
To begin, we will address a few important questions.
Why do you need a business plan? You need one for many reasons, but here are nine good ones: