Safety forex trading course involves following trading plan, but not enough of it "important element" in trading heard probably every novice trader and will likely not one time, but what is it and why do we need it do not understand, almost all newcomers forex! Yes what there to speak, even the most "seasoned" traders often make mistakes because of his lack of ...
1st reason why no one sticks - not wanting to tie themselves to a clear action or simply their absence.
But it is mainly indicative of the absence of discipline in forex trading! And as we already know, forex discipline - the foundation of profitable trading.
2nd reason - everyone seems to be that a trading plan is something very difficult and requires constant time spent on its maintenance and preparation, or the trader simply no concept of what it should consist of points.
So let's be clear in the concept of "Forex Trading Plan":
And so, your personal trading plan can be presented in the form of 2 options:
1) certainly recorded on paper, i.e. presented in table form - is the best option for beginners forex market traders, who generally do not have stability, or they do not always follow their own forex strategy (with a clearly defined). Such traders are trading erratically and cause of their loss is the lack of discipline and the rules of Money Management.
An example of such a trading plan that was created in Microsoft Word or the like is shown in the figure below:
Alternatively, you can simply print out a table with an empty graph, and then, fill it yourself.
The advantage of such a plan - visibility, you can prior to the conclusion of the transaction once again check everything, to analyze, to calculate the probability of making a profit. As a result - you have all the inputs are described, for reasons of transactions as well and in the end you will easily find a pattern or your mistakes wins!
2) trading plan can not be written on paper, drawn up in the form of forex forecast, as I have in the image below (specified entry points that are important resistance levels, input the reason). The result on deals presented in the form of a report in MT4.
Disadvantages - no clarity after 1-2 weeks, all transactions are in the terminal, but the reason for their detention or the conclusion you do not see ...
Therefore, such a plan is suitable forex is basically just an experienced and professional traders who are already receiving a stable profit on forex and clearly hold their own forex trading strategy and are disciplined traders!
Of course you choose, a trading plan you like best. But if you trade long ago, it's still not forget that Forex trading - this is a business, first and foremost, so do not be lazy to use the 1st of its kind - on paper.
Planning transactions in the Forex:
Let's define what kind of items should contain a trading plan:
1) The name of the currency pair, as it is to pick up for your forex trading strategy, we have already discussed in the previous lesson - Select a currency pair.
2) issuing the stop-loss level for opened positions.
3) issuing take profit level at the opening position.
And of course do not forget about money management, if the deal does not meet these rules, the transaction immediately rule.
4) The level of reversal - whether at closing by stop-loss, you can turn in the opposite direction? That is, prescribes the level of the opening reverse order.
5) The reason for the transaction (the number of signals, a brief description, whether these signals from your forex strategy).
Advantages of forex trading plan.
1. Due to the analysis of the market and each position before its conclusion, you will be able to understand whether its general conclusion and what are the chances you have to make a profit is.
2. Understand whether the transaction rules of Money Management and whether it really conclude.
3. Be able to analyze their trade for any time of the site and understand what mistakes you make when trading.
Here are the advantages and will make your trading most secure and stable income!
