- How many years of work are you willing to put in to be a successful trader?
- What percentage of returns on capital is your annual target?
- What is the maximum percentage of draw down you are willing to endure?
- How big is the bid/ask spread on your trading vehicle? What percentage of it will make up your trade?
- Is your trading account big enough to handle the commission drag for your trading frequency?
- How big of position will you take based on the trading vehicles volatility and your maximum percent of capital at risk?
- At what level will you stop out of a trade for a loss?
- Where will you take your profits?
- What is your expectations of winning percentage based on research?
- What is your risk/return ratio based on your potential profit and your stop loss level?
- What is the maximum string of losing trades that are probably based on your research?
- How many losing trades can you survive in a row before being unable to trade financially or mentally?
- How many is the maximum open trades you will have on at any one time based on your risk parameters?
- How many of your trading vehicles are correlated in movement and by how much?
- At what percentage of a loss to your original trading capital should you quit trading because your system, risk management, or methodology is proven wrong?
