What exactly is a traders job description? Last week, Micah posted an entry on distractions during trading. After reading the post, one of our clients decided to write a job description that reminds him that he is working, has a job title and exactly what his responsibilities are as a trader. I asked him if I could share it with everyone as I think it is vital that traders realize this is a job and should be taken as seriously as any other job they have had.
A Traders Job Description
This is a traders job description for those engaged in intra-day trading. It assumes the trader is self-employed and does not trade other people’s money.
- Trader’s primary responsibility is preservation of capital, and shall refrain from any trading activity that violates this highest priority objective.
- Trading hours are from 9:30 AM (EST) to 12:00 PM and from 2:00 PM to 4:00 PM. Trader’s undivided attention must be focused completely on the market during this time. No extraneous activity is permitted. Short (3 minute) breaks are permitted as necessary so long as a potential authorized setup is not pending.
- A review of the current charts and trade plan must be completed 15 minutes prior to market open. Trader is strongly encouraged to use the 15 minutes immediately preceding market open to meditate and/or visualize executing trades per the trade plan.
- Trader must maintain the following documents during the trade day, or just after market close:
- Trade log (including time, entry price, initial risk, exits, net profit/loss)
- Trade journal (showing my reasoning behind taking the trade and whether any of my trade plan rules were violated)
- Trader psychology journal (documenting my thoughts and emotional state just prior to and during the trade)
- Trader shall wait, patiently, for high quality setups to occur.
- Trader shall execute trades per pre-existing trade plan. No early or late entries are permitted.
- Trader shall use money management guidelines (# of contracts and placement of stop loss) as documented in the trade plan. No excessive risk taking is permitted.
- Trader shall utilize stop loss limit orders at all times. Initial placement and trailing stop location is to be determined prior to entry.
- Trader shall wait, patiently, for predetermined profit target(s) to be hit so long as there is technical indication the trend is strengthening. No early or late exits are permitted.
- Trader shall immediately cease all trading activity should any unexpected event occur that jeopardizes his/her ability to execute trades per the trade plan.
- Trader shall conduct a weekly review each Sunday, prior to resuming trading activities on Monday, of the prior week’s activity. Any identified weakness or repeated plan violation shall be noted and a plan to remediate the issue documented in the trade journal.
- Monthly and quarterly reviews will also be conducted to determine progress against the annual business plan.
- A new business plan shall be created at the end of the year with updated goals and income targets for the following year.