Hi awsome ladies and gentlemen, i have been doing paper trading for some time now but i have not figured out yet how to draft of come up with a trading Plan. Please i would appreciate your feedback on what to look for or how to create a good trading plan.thank you all is advance and God bless, to all the believers and for the non believers let your higher power bless.
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A trading plan is basically a set of goals, rules and checklists that you establish for your trading venture. Your plan will be different at different stages of your development as a trader. It will evolve over time and change considerably as you learn more and gain more experience.
To me it is a general guide. I don’t subscribe to stoically “trading your plan” because that prevents you from evolving and improving your plan. I no longer have a written plan since my goals are now set, having changed from learning how to trade to accumulating pips to now increasing my % gains. Similarly, my risk and trade management rules have evolved and stabilized. I have internalized them and don’t need to read a plan to follow them. Occasionally, based on observation or insight, I might tweak a rule here and there. But, that is a mental exercise, a sort of “note to self” rather than pen to paper. I haven’t done that in a long time now.
I believe that creating a written plan comes from the old school of thought where it was thought that formalizing a detailed plan helped things to progress in a predictable manner. That has been shown to be fallacious since nothing is predictable. Agile and malleable frameworks have replaced process oriented methodologies that were previously created in stone and followed with rigor. These frameworks allow you to manage chaos better and to change direction as needed without having to traverse down an unfruitful path for too long just because a plan calls for it.
Putting your thoughts down on paper, succinctly in point form, as you learn might be a good thing as you can revisit them at a later time to refresh your memory, but I wouldn’t call that a plan.
Having created a detailed plan as a newbie I have learned that my time would have been better spent concentrating on developing my trading skills and not wasting time developing a detailed plan. Other traders may share a different view point.
The whole purpose of a trading plan is to take emotions out of the equation. What should be in your plan are the exits. Know your exits before entering a trade. Time frame and risk management. Be realistic.
I got my first trading plan which is still revolving immediately I graduated from the school of Pipsology. I was so dedicated to my study and I read with understanding, I read with my soul and spirit. I dedicated myself to the school of Pipsology. My dedication grew to burning passion and towards the earn of the course I was rewarded for my spent time and effort. I was blessed with a Trading system. It just came, I don’t know how, but it came. Dedicate your time to study and your system will naturally come to you. That will be your reward for your time well spent.
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What system do you use?
Hi Npetit, having a trading is plan is very important and for making a good one, first of all be sure of what maximum funds have you decided to risk in trading. Then accordingly screen for securities that you can trade. Just be careful on managing your money well, its all about it. And once you are done with creating a plan, make sure that you stick to it as well.
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I use double bottom and double top trading system along with RSI and SMA indicator. I always place order at bottom 2 and peak 2. I can’t do without the SMA indicator, it is the core for my system.
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It sounds really like a plan and you should make it really this way for many many reasons out there. How else you would go out for that matter for many things here ? You should start making things small and all will be fine then when you will be in need for whatever it may takes.
how much you can return from your trading plan , it depends on your money management , so be experienced about the money management you have already.
managing money is a great skill in Fx trading and to be experienced about MM is along term process. so, most of trades lost interest about that
this information is priceless, thank you.