Trading forex without a trading plan is one of the biggest mistakes new traders are making. Before you start trading you should know that having a forex trading plan is one of the most important pieces of the puzzle for becoming a consistently successful forex trader. Many of the forex traders who are new in the forex market are trading without forex trading plan which is leading them to losing the account.
exactly, trading plan is important and mainly to have some good money management
Totally agree. We need a plan for everything
LOL, I know…believe me, most of us as newbies started out without a trading plan, strategy or even a basic MM or stop loss…and yes, as expected we all managed to total our accounts in record time. Trading without a plan or a strategy is like learning to ride a bike for the first time without the safety wheels or a knowhow as to how brakes work…or where the darned brake is located…
Experience. We need experience to make a trading plan. Without trading experience, we will know how to trade in forex and trading atmosphere. That’s why we should trade with demo account first if we want to get maximal result here.
But a better option than the demo is a micro or nano account, for real trading conditions…
Trading plan is very necessary not only for a new trader but it is also important for experienced traders. We can not succeed if we have no plan and we can not follow our plan.
What ever trading plan you will created on demo trading is not going to work on real trading. But if you open a micro account and start trading with real money, there you will get the experience.
trading plan makes your trading disciplined and managed .You remain in limits not exceed your your loss what you had planned before.It avoids greed in trading .You are patience and good trader at the end. Planned practice is important to work good in real account
Yes of-course we can trade with discipline and planning helps us to achieve our goals of earning good and consistent profit. Planning also helps the trader to improve money management skills which enables the trader to minimize their losses.
soooo… as a newbie, should i start with a demo or start a nano account? how “different” are the trading conditions? do you mean that the demo accounts do not provide all the tools or it’s just the fact of fake money vs. real money?
This is so true I actually blew my account thanks to trading without a plan, definitely learnt me lesson
Everyone needs a plan and it is must for each and every person entering to the forex market to achieve his/her goals. You need to know what you’re looking for, what your aim is and how you plan to achieve your goals. With proper planning you already know how much risk you can bear, when to go long and short, where to place stop loses and targets. The person who trade with proper plans become more disciplined and confident.
Without a plan do not like. It is very important to know how and what to do and most importantly everything is in order. So make fewer mistakes
Some traders would fantasize about making big profits without trading plans. Why? Trading plans are absolutely necessary to excel in Forex. So if you don’t design your own trading plan, chances are you’ll fall into another trader’s plan which isn’t designed to suit your trading needs. And in the near future, you’ll quit trading. So it is very compulsory to have a well-arranged plan.
…fall into another trader’s plan…
Really nicely put.
Having a plan for something makes executing the thing more strategically,orderly and with a sense of direction the same applies to Forex,a trader with a trading plan is more organised and less emotional since trading plans mostly contain the risk reward ration, money management among others to follow.
It’s simple, really. Having a trading plan means being prepared for different market conditions and knowing what to do in different situations, rather than trying to figure it out on the spot and making a mistake due to haste.
In life, when you fail to plan, you’ve already planned to fail even without you realizing it. The same is applicable here in Forex. If you must succeed, you must have a plan, a time-tested strategy or method that will work for you. Otherwise, you’ll just here watching traders get rich and you help share their success stories without you getting involved.
Planning for something is actually planning for success and those who come up with a trading plan are more closer to getting success than those who does not plan and obviously loose their money and loose either more money while chasing that lost money in trading.