Basic Trader plan.

[MTbadger]

ok so i am still very new to forex but after about 50 hours of research i have finally been able to draw up a rough draft of my trading plan i am going to try out on my demo account. if you follow inner circle trader at all, you know that he warns against taking advise from others to heart. and that someone else's plan might not work for you. so with this in mind. i am not looking for people to tell me what things to remove or how to drastically change my plan. but rather i am looking for people to give me ideas/strategies/indicators to check out. am also not recommending any new newbies to follow my plan because i have not tried it out yet and i feel that everyone [B]needs to find out what works for them. ok with that all said

BASIC TRADING PLAN

1. Determine whether to long or short

A.) follow commercials lead based on the C.O.T. report

B.) use Top-down analysis of market trends and the countries on either side of currency pair

C.) analyze any current or upcoming news for both countries in currency pair


2. Determine when to enter trade

A.) plot out yearly monthly,weekly,and daily his and lows. (color coded on importance)

B.) plot atleast one long term and one short term FIB

C.) wait until price is close to or hitting a hi/low and FIB

D.) ALWAYS use more than one indicator to confirm entry point


3. Practice Disciplined risk management

A.) NEVER risk more than 2% equity on all my trades combined

B.) always use trailing stops

C.) on profitable trades, move stop up to BE point

D.) always place take profit marker, atleast on the next level of SnR

E.) never place market orders. only limit orders.( aka don't react to market. anticipate it)

F.) keep emotions entirely out of trading

[villain]

i've gotta start to draft my trading plan too. hummm

btw if you are looking for strategy, i'd suggest to check out price action. there's a good ongoing thread about it "pure price action for dummies" by nikitafx

there is also a very old thread by mav08. mav08 has been banned but his name is cleared up. you can follow his trace on the net.