Do you have a Business Plan for your Forex Trading?

I think everybody must have strategy B. But First you should completely focus on your strategy.I think every trader has a good business plan.i want to take 15% risk and make 30 pips everyday.if i get this then i close my trade for this day.i also use stop lose 50 o more.Depending on the market situation. I use money management to prevent margin call. Besides that I use 2% risk in my every trade. I have a target 1% to 3% from my deposit in one day.

I have also plan but very difficult to stick with that plan ,

Iā€™m in the process of drawing mine up. From what Iā€™ve seen so far if you want to make money long term, you should have a business plan. In your business plan, there should be a very detailed trading plan with goals, based on your mind-set, money management and method(s) to reach your goals. I will be using a daily trade log to keep track of what Iā€™m doing right and wrong then update my trading plan accordingly.

I think by keeping a log itā€™s a lot easier to follow your plan because you can make adjustments as needed. For example, what kind of income goals do you set and what are you basing them on? You could say I want to make x amount, and after a couple of months you would be in a better position to set those goals etc

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ā€œPlan The Trade and Trade The Planā€
:slight_smile:
so simple but so hard to follow ā€¦

My plan is pretty loose in general. I strive to take at least one high probability trade per week that will give me at least 2:1 return (I trade on 4h and daily primarily)- a trade that really reaches out, grabs me, and screams ā€œTRADE MEā€. I risk 3% and my stop is dictated by whatever point of S/R Iā€™m trading off of. Usually itā€™s about 75-125ish pips- lower if on a 4h.

I donā€™t personally have long-term ā€œearningsā€ goals because I place so few trades I donā€™t want to feel pressured to take a trade to meet some arbitrary goal. My goal is to take out what the market offers me. My only concern in that regard is ensuring I have more wins than losses.

There is such a thing as over-planning. Iā€™ve seen some people who have hugely in-depth plans that read more like War and Peace than a concise strategy. I feel like a plan should be something a person can easily ingrain in themselves and act without referring to Chapter 9, Section VII.C to know what they need to do.

Entirely opinion and personal preference though. Your mileage may vary.

I learned something early in my business life and something that I always preached. When asked Do I need _________
(in this case trading plan) ? My answer is always the same. ā€œJust follow what the successful ones do.ā€ I read this morning on the forum and one of the members here as a 52 page Trade plan, there are others with one page. No matter what you want from trading, you need to set goals and they need to be written down. The clearer the better. Then you need to write down how you intend to reach those goals. Can you reach some thought in your head you call a goal without a systematic plan; sure, but what every successful trader tells you is the odds are stacked high against you.

I can not say I had successful plan, I believe in trading plan . When my trading is going better I can make better plan for future trades. Plan is important that makes your trading disciplined , you work like professionals.

This is a somewhat old thread but still highly relevant. The first reaction might be why on earth would one even ask such a question as:

ā€œDo you have a Business Plan for your Forex Trading?ā€

Does not [I]every [/I]business have a business plan? How can one run a business [I]without [/I]one?

But actually the question, if expanded to cover what should a good business plan include, is essential for every trader, whether professional or part-time.

This is one very relevant comment from above:

Whilst it is essential to have a business plan, it is also critical that it is practical and ā€œhands onā€ so that it becomes automatic and not requiring checking before entering a trade.

The huge benefit of a demo account (or, even better, a live account trading micro lots) is that here you can practice and test to your heartā€™s content all and every type of indicator, technique, method, system, etc without any need for any kind of business planā€¦but the moment you go live with real size positions, [B]that [/B]is the time when you really [B]must [/B]have a complete strategy covering [B]every [/B]aspect of your business. Without that you are just another cowboy trader who is nothing more than just another 5 minute wonder, blown out and never heard of again.

Forex is complex and it demands professionalism. Do not insult it by not respecting it. If you are not prepared to take pride in your own professionalism by [I]at least[/I] creating a sensible business strategy for yourself then find another way to part with your moneyā€¦

The only plan I have is to trade a lot, as practice makes men perfect and it also make the trade perfect too. Though I may lose sometimes, but it will help me to gin experience.

True. People, myself included, keep saying that itā€™s important to be disciplined, which is great in theory, but so hard to learn in practice.

If you fail to plan then you plan to fail!

Having said that, I donā€™t believe you should set yourself daily targets and then stop trading if you hit them.

You have to look at your trading life as one long trading day, if you have setups which work for you then stick to them and donā€™t be afraid to pull the trigger, regardless if you are UP your ā€˜targetā€™ on the day. Some days you might lose some profit back but other days you will miss out on that bumper day when you make bundles!

Youā€™re always going to trade better when you are in profit on the day as you wonā€™t be revenge trading or looking for trades which arenā€™t there to try and make back your money.

Why would you want to limit your trades when you are in good focus and obviously seeing the market well.

Plan to trade in a certain way and to meticulously document your trades in detail to see what is working.

Good luck

Business plans are very much important, in Forex trading. You need to plan it out if you wanna become a successful trader.

I have a certain plan. Every week I check my orders and income and see how it workedā€¦ Anyway, itā€™s always better to know the goals and to see if the scheme was good

Yes I had also a plan for forex trading . This business need it because without following rules and plan one is not considered a good trader. With plan we are limited in loss and bot greedy in profits. I have to remain contented with my business plan that is in benefit than having high risks in trading without any plan.

Yeah and each and every trader should have one. Else they would end up losing each and every cent of your capital.

A trade plan is a must have and we need to make sure that we have clear goals and targets while trading, once this goal is achieved we should not over trade. Instead we should take some time to review our previous plan and identify the weaknesses to come up with new improved trading plan.

If you donā€™t know where youā€™re going, how will you know when you get there?

Yes of course, you need to have business plan, to becoming successful in Forex Trading. Else you wonā€™t survive in the long run.

Business plan for forex trading is as good as a trading system. One I will suggest is the stochastic oscillator; you can use overbought and oversold conditions.

Iā€™m not sure Iā€™d go quite as far as to say that ā€¦

Both are essential to become successful, but someone with a viable trading system and no plan to trade is, in reality, overwhelmingly better placed than someone with a trading plan but no system, simply because learning how to create and execute a trading plan usually demands [B]far[/B] less education, time, effort and experience and can be done in a small fraction of the time it typically takes people to develop a viable trading system.

One what? The stochastic oscillator is neither a trading plan nor a trading system: itā€™s simply an [I]indicator[/I].