. The first one to know why we need a trading plan is the same as trading with, do business. Most business involving non-technical factors determining success or failure as a business. Well, it is also so. Understand the dozens of technical indicators and get to know each and every fundamental news entry isn't a guarantee you success in trading. Although business here is 1 person that is yourself, there are many non-technical factors that also you need to master to make your forex business success. That's why you need a trading plan.
A good trading plan must be able to describe your trading targets, financial and risk management, trading systems, and also many small details such as trading time, diary, and failure analysis. Hmm, never thought of not to document all that? The good news You've learned some of them on our forex classes. The rest is just an extra that it didn't seem that hard.
Come closer, I will give you an idea of a trading plan as an example of the future! A trading plan must contain some of these factors:
Target Trading
we've learn it some time ago. Let me see how to determine your trading goals/targets when we create a trading system.
Risk management and financial
also we already learned. I.e. how to put Stop Loss, determine the risk to reward ratio or the funds needed for opening a real account. Maybe that needs to be added here is set up when you do a withdrawal after the profit obtained.
Withdrawal is the sweetest moment in trading. By doing your withdrawal also helps your trading psychology to stay healthy. Because some traders are not able to withstand the mental serakahnya when the funds in the accounts has grown to hundreds of percent and start to become over size aka too much enter position. As a result the loss again. Well advised if your funds have grown large enough (say evolved into 200%) it is worth appealing your profit and leaving only the capital again to re-start from zero. Pull, isn't that sweet?
Trading System
Ah, it's been discussed at length. A trading system is the heart of Your trading plan. Create a trading system that really fits the character yourself.
Trading hours
help you to know when is the right time to monitor the position because at that time many opportunities that can be taken. There are several options here, such as whether you want to trade at the moment one of the market open, second market currency you opened or tradingkan by the time the market really cover both. Do you want to trade on the news hours are often excluded or not, etc. Trading hours will lead you to determine the best time for yourself
rules
for yourself Sometime in the course of trading, we will find new principles in trading. Now we need to list it and run it with discipline. Some examples of those principles can be read like this:
- I will not trade when one market are off
- I will not trade on Monday as the market has just been opened.
- Under no circumstances I will still adhere to my trading system.
- I will only see my forex platform one time a day.
Etc. ... etc.
just remember that everyone has their own rules. So, find your own rules and make sure yourself.
Journal of Trading
it is important to record all your trading activities including all psychological pressure that occurs when You trade. This will help you to review what has happened to the funds you invest in the future. My advice, make a blog for it. Currently many free blog providers kok on the internet. Register and did a post. Who knows your blog's crowded other traders and can provide an extra income hehehe. You lack
come on, admit that you and I have a shortage. Honesty is the beginning of a change is not it? Some flaws can be like this:
wayward I frequent on a trading system I created.
I often trade record aka the most open positions.
I am often afraid to do entry whereas trading system I've indicated to enter
.Write down all your flaws and fix it!
Now make your own trading plan. Then follow Your trading plan as a signs which must be observed.
