justforex
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We’ve talked about Forex trading strategies before, but strategies are rather abstract things. If you want to be successful, you need more practical directions, ones that you can apply on instinct. In other words, you need a Forex trading plan.
What is a Forex Trading Plan
A proper Forex writing plan is a rigid list of trading conditions you need to act on, as well as the actions you need to take when you see those conditions. You are not allowed to deviate from the trading plan during trading, even if you think that it will be a better decision.
Sounds insane, right? However, this is a technique many professionals not only use but recommend. Not because it simplifies the trading process, or limits your emotional involvement — although that too. The greatest advantage of a Forex trading plan is that it limits the risks.
Untested trading opportunities are not something you should indulge in. You may think that you know what is going on at first glance, but you might be proven wrong. If you want consistent profits — you need to limit your trading opportunities to the tried and true options.
How to Write a Forex Trading Plan
Think about your Forex strategy. If you are a scalper — well, congratulations, your strategy is a Forex trading plan by itself. Since scalping is already based on fast, precise order management, most strategies go into excruciating detail and do not require further details.
However, if you are a Price Action follower, you have some work to do. This strategy describes dozens, if not hundreds of patterns and trading with all of them is nigh impossible. Which means, that you have to limit your options to the ones you understand best.
Pick each pattern and describe its entry signals, as well as your trading mechanism for it. For example, here’s a Pin Bar:
Once you learn and practice with more patterns, you can add them to your trading plan. Start with Outside Bars, Inside Bars, and DHDL candles.
How to Trade with a Forex Trading Plan
Once you have a trading plan, you need to sign up with a broker and start making money. We recommend JustForex, since not only do they offer good trading opportunities and very responsive support. Sign up right now and they will also double your deposit, as long as it is larger than 10 USD.
What is a Forex Trading Plan
A proper Forex writing plan is a rigid list of trading conditions you need to act on, as well as the actions you need to take when you see those conditions. You are not allowed to deviate from the trading plan during trading, even if you think that it will be a better decision.
Sounds insane, right? However, this is a technique many professionals not only use but recommend. Not because it simplifies the trading process, or limits your emotional involvement — although that too. The greatest advantage of a Forex trading plan is that it limits the risks.
Untested trading opportunities are not something you should indulge in. You may think that you know what is going on at first glance, but you might be proven wrong. If you want consistent profits — you need to limit your trading opportunities to the tried and true options.
How to Write a Forex Trading Plan
Think about your Forex strategy. If you are a scalper — well, congratulations, your strategy is a Forex trading plan by itself. Since scalping is already based on fast, precise order management, most strategies go into excruciating detail and do not require further details.
However, if you are a Price Action follower, you have some work to do. This strategy describes dozens, if not hundreds of patterns and trading with all of them is nigh impossible. Which means, that you have to limit your options to the ones you understand best.
Pick each pattern and describe its entry signals, as well as your trading mechanism for it. For example, here’s a Pin Bar:
Once you learn and practice with more patterns, you can add them to your trading plan. Start with Outside Bars, Inside Bars, and DHDL candles.
How to Trade with a Forex Trading Plan
Once you have a trading plan, you need to sign up with a broker and start making money. We recommend JustForex, since not only do they offer good trading opportunities and very responsive support. Sign up right now and they will also double your deposit, as long as it is larger than 10 USD.
