Trading plan for a beginner?

Just learning & practice in demo; live trading is not for the novice traders. They should concentrate on Learning & learning.

Demo is best for beginners , admit. But beginners get nothing from here because they trade here with no analysis , that’s why sometimes I prefer micro account for live trading experience.

Here’s my 2 cents. Your trading plan should be a road map starting with where you are now and where you want to end up. Start with basics. Goals, don’t get hung up on a lot of details. Cause the 1st thing you’ll find is nothing stays the same. Next 5+5=10, But in trading there are a lot of ways to get to 10. So how much time do you have to learn how to trade, how much time do you have to trade, where do you want to be in the end?. Success is not quick, easy or free. It is a collection of experiences based on making the same mistake the least amount of times as possible. (And understanding; you will make the same mistake more than once in your trading career)

The most important part of your plan is writing. Keep a daily log to along with your trading strategy and your goals. Start with short term goals. In my case I had a lot of experience in financial services, but none in forex. So that was the 1st thing I wanted to learn and kept notes in my daily log to review. It’s very important to know what you are doing right and what you are doing wrong. Of course everyone is different has different skills and you need to know yours.

In the beginning your actual trading system and mindset are not that important. As you become more knowledgeable the system will change from generic to yours. After a couple of thousand demo and live trades, my mindset was much different from when I started. I started using a chart with lots of indicators and news reports, now I use a couple of base indicators not because I need to, but because I’m old and they save my eyes. My goal in the beginning was to pick tops and bottoms, now I pick profit. Again most important part of this is writing in your log. This worked, this didn’t; I did this, why didn’t I do that etc. I write in my log every day. Based on my fundamental and tech analysis, I first look at the facts for the day or the longer period if I see something I like. If there is I make a trade strategy. If there isn’t I don’t. No matter what it goes into my log. If I trade, I write the plan out then post it in my trade journal here on Baby Pips. (Best thing I ever did. Keeps you honest). What went right, what went wrong goes into the log for constant review with a look toward always improving.

Hope this helps. Main thing Rome wasn’t built in a day, neither will your trading journey. Good Luck
Gp

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Painstaking work, considering every possible pip winning or losing. Estimating slippage, spread costs, keeping fixed R/R ratio, % of capital which is risked in trade and changing setup with clear understanding why you have to do that.

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You might want to gather the knowledge through books, websites and blogs. Then work on the analysis skills in paper trading until perfection. You should be familiar with the fluctuations to bring in the trading confident.

It’s good that you’ve decided to make a trading plan especially as a newbie. There are good responses. Make your own based on your trading time, risk level, order type, recording (track weekly or monthly) I would say that most newbies fail due to lack of control or emotions. Building a strong emotion helps building a strong trading plan.

I find it difficult to understand the demo, am the theoretical aspect than the demo, how can you please help me out?

Great list! Also, check an economic calendar regularly so you’d be aware when important news is coming out. Those can make a trading plan go down the drain if you don’t take them into consideration.

Basically nothing you have read on any websites. Many traders go in with a false sense of confidence due to being educated and then come out humbled. It’s sort of like the real world.

You have to accept some things:

  1. There’s no singular trading strategy that will consistently deliver profits.
  2. The brokers with the highest percentage of profitable traders encouraged strategy diversification and automation the most.
  3. Creating your own strategy is a full-blown development process. It’s not as simple as demoing for 2-6 months after picking up a strategy to trade. Conditions change and strategies must change over time as well.
  4. If you do not have reasonable goals and expectations, you will lose money and become disillusioned.
  5. The people who will rip you off the most are not the brokers (most brokers are fine), they are the ones providing you with education for money up-front. “Mentors” are a massive rip-off too.
  6. If you treat the Forex Market like a casino, you get casino-like results.
  7. Trading is not sexy and should not be dramatic.
  8. Putting aside ego and pride in the pursuit of profit goes a long way.
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Yes it is , there is no trading strategy that can bring profit for all time , so we have to develop our trading approach by means of real money management and regular practice.

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Which books can you recommend which helped you to achieve success in trading?

I think in that case it is the traders’s fault if they get nothing from trading on demo account. Most newbies tend to ignore what he actual purpose of demo accounts is. You need to be smart enough to not trade recklessly on demo even if it doesn’t involve real money

Thanks for all of your points! But, it would be great if you elaborate each point with relevant descriptions.

You are not going to like this answer, but learning SQL, R, Python, MQL4 and MQL5 will go a long way. Technology has created opportunities to develop strategies and manage risk unlike any time previous.

The UBS trading floor is nearly vacant when it used to be packed with traders a decade ago. The world changed and most newbies need to understand this.

My trading plan is: working on the whole chart according to my Price Action knowledge, identify the support/resistant levels to know the status of current market trend! Using, 2% risk reward ratio with the proper SL & TP points.

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Winning plan is a matter of good patience, hard work and dedication. Each forex trader must understand his trading needs. You can here just by following others. A trader will require his trading plan as per his trading needs.

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Winning plan is a matter of good patience, hard work and dedication. Each forex trader must understand his trading needs. You can here just by following others. A trader will require his trading plan as per his trading needs.

What’s scalping and price action techniques you use in your trading?

Well, I read the whole chart & draw important levels (support/resistant) of the market! In this case (scalping), I like to use M15 time frame mostly.

Scalping contains huge risk than other trading strategies we have in Forex trading and price action is more appropriate for only knowledgeable traders.

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