The business plans can be simple or complex depending on how you want them to be, but more importantly in the end, you have a plan and follow their system.
With that said, here are some of the key points that any trading plan must have:
1-A Trading System:
This is the true essence of the trading plan. This should be a system you've tried a lot and which have traded for at least two months on a demo account.
Includes all necessary information about your trading system, such as: the time periods you use, criteria for entry and exit rate risk, currency pairs to trade and the number of lots you work with.
Example: I am an trader who works during the day and use Forex charts 10 minutes. Activity when a moving average crossover and all my indicators support this direction. I trade only with EUR / USD and do not risk more than 2% of my account on each trade. For now, I work with 5 mini lots and augment the size of my lot by 2% according to my rules of money management.
2-Trading time:
This is a crucial part of the plan because it will determine three very important when analyzing the market and trading, when you see the open Forex market, and at what point will you assess your actions during the trading day.
3-Your perspective
Ask any trader and they will tell you that one of the hardest things to do while trade is put aside your emotions. This section of your business plan you describe that mental state must be based on when you're trading currencies:
Example:
I'll see what they actually say the graphics and not what I want to say.
No matter how misdirected go with an operation, I'll make sure to work only with what my eyes see and not what my feelings tell me.
I will avenge the market to lose money in one trade.
I do not I will challenge myself if I lose an trading. Instead, I'll take it as an experience and move on.
4-Your Weaknesses
Yes, we all have weaknesses, only we do not like about them. But ask yourself this: How can I get further if I admit that I work with and improve certain areas? This section of the trading plan will be an objective way to keep track of all as you work to become a better Forex trader.
Example:
"I tend to open many operations. Whenever I lose a position, I get angry and immediately try to avenge the market "
"I tend to get out early of tradings"
"I do not follow the rules of my system always"
"No I stick to my rules of money management"
5-Your goals
"Make lots of money" is not a good goal. Sit for a moment and think about it what you really want to achieve as a Forex trader. Would you like to dedicate this for life? How much investment really expect to recover from your trading based on your knowledge and experience? Your goals are not about only money. Maybe you like to be more disciplined and gain more confidence in yourself. The goals are personal.
What do YOU want this? Use these goals as motivation when times get tough. These goals are your vision and you should always keep your eyes on them!
6-The trading Diary
This will be an invaluable tool to help you become better Forex trader. Be sure to record all your transactions and the reason why the opened. Later you will see that and evaluate your trading and see how much has progressed. I have seen my trading records and I could realize that I have grown as a forex trader.
My first trade were very basic, I have now progressed, my trades make more sense to me now. I won a lot of confidence in my career and looking back in my trading, I could really evaluate myself and see I'm going up to meet my goals.
This tool will help you tremendously in the long run, so take a few minutes each day to record your movements a day.
You'll be glad you did!
related posts
- best macd indicator
- breakout panca eagle indicator
- gator mt4
- high low indicator forex
- ichimoku forex system
With that said, here are some of the key points that any trading plan must have:
1-A Trading System:
This is the true essence of the trading plan. This should be a system you've tried a lot and which have traded for at least two months on a demo account.
Includes all necessary information about your trading system, such as: the time periods you use, criteria for entry and exit rate risk, currency pairs to trade and the number of lots you work with.
Example: I am an trader who works during the day and use Forex charts 10 minutes. Activity when a moving average crossover and all my indicators support this direction. I trade only with EUR / USD and do not risk more than 2% of my account on each trade. For now, I work with 5 mini lots and augment the size of my lot by 2% according to my rules of money management.
2-Trading time:
This is a crucial part of the plan because it will determine three very important when analyzing the market and trading, when you see the open Forex market, and at what point will you assess your actions during the trading day.
3-Your perspective
Ask any trader and they will tell you that one of the hardest things to do while trade is put aside your emotions. This section of your business plan you describe that mental state must be based on when you're trading currencies:
Example:
I'll see what they actually say the graphics and not what I want to say.
No matter how misdirected go with an operation, I'll make sure to work only with what my eyes see and not what my feelings tell me.
I will avenge the market to lose money in one trade.
I do not I will challenge myself if I lose an trading. Instead, I'll take it as an experience and move on.
4-Your Weaknesses
Yes, we all have weaknesses, only we do not like about them. But ask yourself this: How can I get further if I admit that I work with and improve certain areas? This section of the trading plan will be an objective way to keep track of all as you work to become a better Forex trader.
Example:
"I tend to open many operations. Whenever I lose a position, I get angry and immediately try to avenge the market "
"I tend to get out early of tradings"
"I do not follow the rules of my system always"
"No I stick to my rules of money management"
5-Your goals
"Make lots of money" is not a good goal. Sit for a moment and think about it what you really want to achieve as a Forex trader. Would you like to dedicate this for life? How much investment really expect to recover from your trading based on your knowledge and experience? Your goals are not about only money. Maybe you like to be more disciplined and gain more confidence in yourself. The goals are personal.
What do YOU want this? Use these goals as motivation when times get tough. These goals are your vision and you should always keep your eyes on them!
6-The trading Diary
This will be an invaluable tool to help you become better Forex trader. Be sure to record all your transactions and the reason why the opened. Later you will see that and evaluate your trading and see how much has progressed. I have seen my trading records and I could realize that I have grown as a forex trader.
My first trade were very basic, I have now progressed, my trades make more sense to me now. I won a lot of confidence in my career and looking back in my trading, I could really evaluate myself and see I'm going up to meet my goals.
This tool will help you tremendously in the long run, so take a few minutes each day to record your movements a day.
You'll be glad you did!
related posts
- best macd indicator
- breakout panca eagle indicator
- gator mt4
- high low indicator forex
- ichimoku forex system
Forex is simple follow the trend and you will rich.
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