Hi, the OP covered that in his Risk Management. We may be meaning the same thing, but I prefer the OP approach. You should think first and foremost how much you are risking to lose (and whether that fits your overall investment plan) before you have the idea of which profits to expect.
It may seem like it is one and the same to think about profit first, but in mindset it is not. Someone else said on this forum that a beginner trader thinks in terms of how much money he may make, and an experienced trader thinks in terms of how much money he may lose.
All the points are very well written and this will really help so many new traders. Trading time, risk management, emotional control, and technical analysis are all critical components of a successful trading experience.
Thanks for the comments. It takes 2 years to make this Trading Plan but still I am struggling to get profitable every month.
I am trying to develop it regularly and I will share with this thread.
These steps are very useful and interesting, I would only like to add one in your trading plan steps i.e, emotional stability. It needs to be controlled so that you can trade without any greed, anxiety and stress.
Hi,
I have re-read the OP post, and I think this is catered for within the noted steps of:
What time suites my lifestyle?
What Is your daily risk?
Am I comfortable risking that?
By deduction, if the OP chooses a time that suits his lifestyle, and then is comfortable with the risk, then he has emotional stability (control) by the act of writing down the steps. The more I read this post the more I see that a lot of thought has been put into it.
Greetings, and peace be with you. Your respond interest me. Please I could like it if you will guide me on this plan and strategy. I have not trade before and demo account I tried scared me, as I always make profits, it wandered me because I donāt even know how to place trade when I want, close it when I want, Iām only using guessing to open and close, I think I made a gain by seeing a plus (+) sign . I donāt know stop loss or take profit setting. I donāt know how to set the lots, though I come across this things lately, as I register with out knowing what Iām doing. I come across forex trading by chance, it was cryptocurrency ( bitcoin) that leads me to FOREX. But how I make profit is what I donāt understand. Could they give me profit just like that ?
Hi Excel04,
Thank you for your response. To be able to guide you some more, it would be useful if you could answer these questions.
1 What is your native language? I think it is not English.
2 Do you have difficulty in interpreting written English? When you read other posts on Babypips, can you understand what the people are saying on their forum posts?
3 I notice that the total read time on the forum is 2 hours. Have you started the Babypips School of Pipsology in the Education section at the top of this page?
4 If you have not traded before, it is understandable that the demo account scared you, but that is the reason most people suggest you use a demo account, so that your mistakes from not understanding will not cost you any money. So I suggest you look for some YouTube videos on the use of a charting package for trading. Start with MT4 as the most common used by brokers. Also look at some āstrategy examplesā
5 I am unavailable to do any one on one coaching or tutoring,
Iām a Nigerian, I understand English to the best of my ability as some here hardly write well. Iām not up to one week in pip FORUM so Iām still trying to understand how to interact with the interface. Iām reading pip education, unfortunately I didnāt get the educational materials squarely, as I stormbled on it suddenly. If you would help me,I would be great full. This is my WhatsApp number +2348084008081. Thank you.
I canāt commit to helping you personally, so will not contact via WhatsApp. I hope you understand. I only have 24 hours in a day. Please continue the Babypips School of Pipsology. They say you need to be patient to be a good forex trader. Three attributes required:
Uses Simple Trading Methods
Has Complete Control over Own Emotions
Has Self-Discipline
I can guide you to information but you need to be able to learn at your own pace and do your own research. That is why so many are not good at it and give up at it.
There is a saying that I particularly like:
Opportunity is missed by most people because it is dressed in overalls and looks like work
And how do you read this sentence with no spacing between the words?
OPPORTUNITYISNOWHERE
Opportunity is nowhere, or
Opportunity is now here?
Try some internet searches with words like:
How to read forex charts
How to place trades using MT4 charts
Let me know when you have spent some hours on it if you have not progressed your knowledge and I will try to help again.
Very good information. Trade management should be done with 100% effort. Many loss trade profits can be made through planning and trade management. And the journal needs to be maintained. Then we can learn from mistakes.
These questions should always be taken into consideration before preparing the master trading plan.
I believe that each trader should write their own plan as per their personal trading styles and risk tolerance, and should always be ready to make adjustments in the plan according to the changing market conditions.
I definitely saw opportunity is no where wow it took 3 times to see opportunity is now here. I need to do some meditating and reset my brain for the day
I discovered this on a āsales courseā in the 1980s paid for by my employer at the time. Itās funny how these little things stick with you over the years and decades, and how their application remains relevant in a world that changes so much. That recently drove me into being interested in crypto-currencies, then DeFi, then NFTs, then crypto gaming - all in the space of a year that created a new income stream from stuff that I had heard of before but never bothered to find out about. There is no doubt in my mind that if I had not persisted with Forex since 1989, I would not have any tools at my disposal to invest in and now trade in crypto. Itās a completely new income stream for me that has exceeded all my planning, even the stretch target. It may disappear as fast as it arrived, but I somehow doubt that.
Here everything depends on your expectations from trading activity and your objectives. If we speak about building a plan step by step, then perhaps firstly you have to determine your objectives, because when you have goals, it will be easier for you to understand how to reach these goals. Secondly, you would better think about deposit and primary timeframes. Actually, itās called kind of trading. Scalping, daytrading, investing, swing trading and so on.
Finally, you have to determine your trading strategy and you should not only just create it, you have to test it, edit it in case itās needed and trading on demo for a while.
I believe that the market is changing on a daily basis and so should our trading plans. You can stick to a specific approach but the approach should be modified or enhanced as and when the situation demands.
