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:
- There’s no singular trading strategy that will consistently deliver profits.
- The brokers with the highest percentage of profitable traders encouraged strategy diversification and automation the most.
- 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.
- If you do not have reasonable goals and expectations, you will lose money and become disillusioned.
- 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.
- If you treat the Forex Market like a casino, you get casino-like results.
- Trading is not sexy and should not be dramatic.
- 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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I think it’s best timeframe where the levels work properly. I mean for those who hunt short term market opportunities. Lower timeframes are most of the times consist of noise.
There is no specific trading strategy for a specific trading plan. A trader can trade on price movement, chart patterns, candle stick patterns or he or she can take a trading decision using different indicators like moving averages, RSI, ADX and many others.
And i believe every trading strategy or trading plan should be modified at times according to the market movement and market conditions.
A trader should be always flexible to match the market movement.
if you can ensure lowest trading spreads , there is a chance to get good result by means of scalping that brings profit in instantly.