Hello all,
I’m new to trading Forex. I have been using Babypips for a few weeks. I just opened a free demo trading platform to practice trading.
My biggest issue is how to come up with a trading plan. Babypips says to choose one of the major trading pairs and focus on it as a beginner.
I have done that but don’t know how to create a trading plan to stick to?
Welcome to the forum!
This trading-plan template is very well known, well respected and contains all you’ll need. It’s free to use, or circulate (no copyright problems!).
The link below downloads a little PDF.
(You do mean “trading plan,” and not “trading strategy”?!)
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Google to find a simple strategy that involves fewest technical indicators and fewest decisions. Run this on a demo account. Actually, the choice of which simple strategy is not critical becasue it will almost definitely not be the strategy you end up trading with. But learning a strategy and running it will teach you a lot about strategies - so your second choice to demo will be a lot better.
You can know an infinite amount about technical analysis, economics, fiscal policy, international relations etc. but without a strategy you won’t be able to make any money trading off this knowledge.
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Hi and welcome.
If you’re looking for a trading plan, then Theodore’s link above will help.
If you’re looking for a trading strategy, then Tommor’s post above will help, and the second half of this post, has helped many people, too (click the green link).
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Welcome to the forum! For a trading plan, you can start with a simple entry/exit rules, risk per trade etc. Which currency pair are you focusing on?
Starting a trading plan can be tough, but keep it simple. Set a clear goal for what you want to achieve, like getting comfortable with your trades or aiming for a small profit each week. Stick with the EUR/USD pair since you’re already focusing on it. Only risk a little on each trade, maybe 1-2%, so you don’t lose too much if things go sideways. Decide on a couple of rules for when to enter and exit trades, something easy to follow. Make it a habit to check your charts at the same times each day and keep track of what you’re doing in a journal. Most importantly, stay patient and don’t stress if things don’t go perfectly at first. You’ve got this!
Hi @hgtraderlc,
Trading Plan can be set after you have a strategy. If you feel confuse, you must return back to define your strategy. Once you get the strategy, you combine with money management then … a trading plan has been born.
For example, you are trading MA Crossover, then you define the rule first. Print the rule, stick on the wall.
Example:
- You will use MA Crossover on EURUSD H1 chart. Define your rule, do long when golden cross, do short when death cross. Probably TP is 20 pips and SL 1%.
- You may also do MA Corssover on EURUSD M15 chart, the rule can be the same as above. But TP is 15 pips and SL is 30 pips away.
- Money Management, let say you will use 100 USD, will keep it 100 for 3 months. The excess will be withdrawn to buy cup of coffee or spaghetti
, that’ll be fine.
The rule above will be you trading plan.
You open your account, put 100 USD. Calculate 1% from 100 USD, which is 1 USD. That will be you SL limit.
When you sit down, trading … bear in mind your defined rule. Try to follow every single rule … don’t get seduced by anything around you. No temptation, even there is beautiful young girl or super handsome guy, sitting next to you … you can keep still focus on your rule. 
Every week, you may review the result, make adjustment if necessary. Once it’s done, stick into it again during trading. Repeat until there is no more tomorrow
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