Hello. I am AJ and I am trying my best to become a profitable Forex trader. I’ve been working on this around 4 hours a day for about 3 months and have gone through a lot of training including the babypips training processes. With that being said I have read a lot about making trading plans and I know about a lot of different techniques I could incorporate. I can read price action well, use oscillator to increase my odds of predicting the markets movements… etc,etc. Despite all of this general knowledge about how to trade in the market ever since I opened my first Demo account I have heard this ringing in my ear whenever I click on a video or read information on babypips… “MAKE A TRADING PLAN, yOU MUST HAVE A PLAN, ALL TRADERS WITHOUT A PLAN FAILLLL”. With that being said I have been trying to make a plan. I understand the importance of having an idea of what to do in any situation. Despite my efforts however, I have noticed this is one of the only subjects of Forex that has me completely stuck in the mud. I can’t figure out what I should incorporate and I hate copying other peoples strategies because it does not fit me or the way I like to trade. If any experienced traders have any extensive experience in this subject I’m open ears… thank you!
Never truer words were spoken. If you live in Fonthill Ontario canada and you want to visit your best friend in Tempe Arizona, but you don’t want to fly, take a train or taxi ; you want to drive. So you either take out a map and draw your route, or you map quest it and follow the report. You wouldn’t just start your car and drive south because Canada is north and USA is south would you? That’s all your trading planis.
Instead of driving somewhere, you trading forex. Your goal is over the longer term to get from where you are now, to where you want to go. So you start with a goal.
Goal
Example I would like to retire from job in x amount of years and I will need an income of x amount of dollars. I have x amount of years until I want to retire. I have x amount of dollars to trade with… If I risk .2% of my trading account per trade and I was successful 60% of the time I would earn this month towards my retirement. I will review my goal every 6 months and adjust.
Strategy
At all costs protect my trading account. I am going to pick one pair and study the price movement, forex and the calendar related to that pair Reason for this is to give me an idea so I can tell when direction of price is moving is within it’s normal range and is just breathing in the time period I’m trading or has it revered. I will review every trade I take so see the number of times trade went in my favor or I was stopped out. This should tell me if my trading method is correct I will do this for 6 months then review and adjust.
I will be using a simple Fibonacci strategy confirmed with S&R ( or whatever trading method you want to use) Check every trade win or lose to see what went right what went wrong. 6 months adjust.
All trades will be preset no matter what the trading method. Prefixed stop, Pending Entry with a Take Profit Target with at least a two to one Risk Reward Ratio. I will no be allowed in the room once trade is entered. I will not make copy or any other kind of trades on my demo while I have an open trade. I must get up and leave the room. Set and forget. I can not enter another trade while current trade is opened. I will do this for 6 months and adjust. Great exercise for discipline, which when you are taking several trades building positions long term or scalping short term.
Your plan doesn’t have to complicated, long boring and full of useless sheet. But you have to had one, it has to be written and it has to have rules and a strategy. Everything else comes and goes based on the decissons you make long term. Don’t be afraid to copy someone elses who offers you one. Present it here or in the other threads you will find great traders giving advice. Remember though opinions are like A holes, everyone has one. Determine fact from opinion and always always protect the trading account
Hope that Helps
Gp
Tysm I think through reading this I understand a lot more about the subject. Thank you for taking the time and I’m sure this will help a lot.