Greetings all,
Just finished on the chapter of establishing a Trading Plan in school, realized that the guideline in the chapter regarding of what is actually needed to build(include) or consolidate your Trading Plan is pretty vague.
(Do correct me if I’m wrong.)
So my question here is;
What is suppose to be included in the Trading Plan?
From what I know but not certain,
[ul]
[li]Motivation to be a Trader
[/li][li]Specific Goals Setting
[/li][li]The Kind of Returns You’re Expecting to Make
[/li][li]Risk Capital (How much money you can [B]afford[/B] to lose.)
[/li][li]The Amount of Time Dedicated to Forex (On a Consistent Basis)
[/li][li]Daily Pre-Market Routine
[/li][li]Deciding trading zone, US, UK or anything else.
[/li][li]Selection of trading currency pairs.
[/li][li]Select a reliable, trusted and regulated broker for trading.
[/li][/ul]
Enlightenment please, and thanks in advance for any input though you are not obligated to.
selection of trading currency pairs is definitely a very important one for beginners like me, since there’s a high tendency for us to open positions that aren’t necessary.
It is very necessary to have certain rules to enter on a trade. I mean, there should be solid reason to enter in a trade. Once a trade is executed, you should satisfactorily explain yourself the reason for entering on that trade.
And… that rules should be part of your trading plan.
You can find various systems and trading plans in babypips forums. Have a search, Look deeply, then create your own rules.
That will certainly help you…
You can also see my reasons and rules for trading in my trading journal posted in babypips forum following below link 301 Moved Permanently
[B]Please note that a trading plan suiting to an individual may not suit for another Individual. But it can give a basic idea.
[/B]
Well, is not that simple, you’ll see, we tend to write down a lot of rules larger than the constitution thinking we like it but it is easily said than done. Instead I set my plan based on my own experience, my system is forged by [I][B]The School of Hard Knocks[/B][/I], you just cannot simply say rule N°1 “Don’t do this”, how do you know if that particular rule fits on you if you never tested? You must try on your own stupidity first, see how much pain you can tolerate and gradualy diminish the effect lowering your trading intensity until it is bearable, then start creating a handbook for yourself based on the lesser painful experience and moving forward. Setting rules before the crime is invented BAD IDEA. Trust me, this business is all about pain and experience, sorry, that how it works.
Choose the time frame you wish to work on, 15min chart, 1hr chart, 4hr chart etc. Decide the technical strategy you wish to adopt for your trading, Expert Advisors (auto-trading), indicators, price action etc. Once you have that established choose your risk ratio, stop loss and take profits. When this is done decide how much of the leverage you’re planning to use and then it’s good luck from us
