Forex Trading Plan

Having a Forex trading plan is one of the key elements to becoming a successful Forex trader. Many traders never even make a trading plan, let alone use one regularly. It’s very important that you do both; make a trading plan and use the one you make…don’t just make one and then never look at it like many traders do. Here are some important points to consider regarding Forex trading plans:

• Plan, journal & Logs trade

You need to do three essential things to become and remain an organized and disciplined Forex trader. These things are the following:

1. Create a Forex trading plan,
2. Create (or use an existing) Forex trading journal,
3. Actually, use Both of them.

The process of creating a Forex trading plan around an effective trading strategy like price action trading, will work to solidify your understanding of the trading strategy and will also provide you with a blueprint for what you need to do each time you interact with the market. Having this market blueprint is essential for developing the type of ice-cold discipline that it takes to succeed in the Forex currency market over the long-term. Logging your trades in a trading journal is critical to your success because it allows you to have a visual representation of your ability (or lack thereof) to trade the markets, it also creates a track record for you that you can use which will show you how your trading edge plays out over time, this will allow you to ‘tweak’ and adjust your trading strategy as you see fit.

• Trading plans contain a routine and checklist

To put it simply, you need to have a routine in your trading activities; otherwise you will just end up running and gunning the seat of your pants. I have a trading philosophy that revolves around trading Forex like a sniper and not a machine gunner, if you want to trade like a sniper you have to have a routine that you follow, and you have to be disciplined…a sniper in the military is an extremely disciplined individual, and you need to think of the Forex market like it’s a war, and you are a sniper trying to take only the ‘easiest prey’; your ‘prey’ in the markets consists of only the most obvious trade setups. Your trading plan should include a checklist that you follow; this will include things that you look for in the market and what you want to see before entering a trade. If you can tick all the boxes then you enter the trade, if not then you hold off until your trading edge appears again. You can actually formulate your whole trading plan as a checklist; this will make it a smooth format that allows you to quickly decide if any potential trade setup is worth taking.

• Plans contain written guidelines

Your trading plan should contain a written description of what you will do in the markets. This includes things like what your trading edge is, how you trade it, when you trade it, what time frames you trade (I prefer daily Forex chart trading), your strategy for risk management and profit taking, and your overall goals as a trader. You should also include images of your trading edge setups, so that you are constantly reminded of what an “ideal” setup looks like. Eventually, after you follow your written guidelines and “ideal” trade setup images long enough, you will burn them into your brain to the point of knowing exactly what you are looking for in the market, which will work to build your confidence as a trader.

• Be patient and wait for the best chance

Patience is perhaps the most important virtue that a Forex trader can possess. When you are a patient trader it means you know what you are looking for in the markets and you wait for your trading edge to appear before you execute a trade. Trading in this manner eliminates many losing trades that are the result of trading emotionally or without patience. A large part of trading, and perhaps the largest part, is simply waiting for an “ideal” price action setup or other trade setup to form in the market. Traders who don’t wait for an ideal setup to form, end up losing their money quickly because they negate their trading edge and are simply gambling instead. Make sure you stress the importance of patience in your trading plan, this way you will be reminded every time you read it why being a patient trader is so important to making money in the Forex market.

Forex River Ltd. is registered and authorized by the following jurisdictions:

Forex River Ltd is registered and regulated by Labuan Financial Services Authority (LFSA) under license number MB/19/0039 situated at Main Office Tower, Financial Park Labuan Complex, Jalan Merdeka, Unit Level 14 (B) & 14, 87000, Labuan Federal Territory, Malaysia.

Forex River Ltd is incorporated in Saint Vincent and the Grenadines under Number: 23007 IBC 2015 situated in Suite 305, Griffith Corporate Centre, Beachmont, P.O. Box 1510, Kingstown, Saint Vincent and the Grenadines.

● The legal documents should be revised before entering into transactions with Forex River Ltd.
● Clients must be at least 18 years old to use the services of Forex River Ltd.

High Risk Warning

Contracts for Difference (‘CFDs’) are complex financial products that are traded on margin. Trading CFDs carries a high degree of risk. It is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent expert advice if necessary and speculate only with funds that you can afford to lose. Please think carefully whether such trading suits you, taking into consideration all the relevant circumstances as well as your personal resources. We do not recommend clients posting their entire account balance to meet margin requirements. Clients can minimize their level of exposure by requesting a change in leverage limit.

Disclaimer

This site contains external links to websites controlled or offered by third parties. the information contained on this site is intended for information purposes only and it should not be regarded as advice nor as a recommendation to buy, sell or otherwise deal with any particular currency or precious metal trade. Forex River Ltd hereby disclaims responsibility for any information or materials posted at any of the sites linked to this site. Forex River Ltd does not endorse or recommend any products or services offered on that website. Clients carry the sole responsibility for all transactions or investments carried out at Forex River Ltd.
Copyright © 2021 All Rights Reserved
Copyright © 2021 All Rights Reserved
Risk Warning:  Trading CFDs carries a high degree of risk. It is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved.
error: Content is protected !!