The Requirements of Forex Trading Plan:
During Forex trading, emotion makes a clever person stupid. For this reason, in order to avoid the mistake during trading from which kind of decision you should refrain yourself. I repeat again during Forex trading from which kind of decision you should refrain yourself. When will you take the decision that what will you do????
Why not take the decision during Forex trading; it is not because of your greed or fear. However, 90% of cases, we take the trading decision for these two reasons. What will you do during trading must be determined before. Prepare all the designs in red, blue, green ahead of time. Whatever you will do in the Forex trading will be a part of trading strategy. Patience and discipline in your work will be found by good planning. Whether during trading (anything to Buy, Sell, and clauses, and how much the price, which at the moment is it); it is part of your plan.
The process of trading, when do you start, how do you start, what do you do any of the events occur; everything will be in your trading plan. That means if you want to buy and sell stock and currency you need to plan as the army do. Do you know how the army plans?
Give an example of how to plan …
Suppose one day you heard Washington is in the possession of militants and the Army of the United States Who has been given the responsibility to save the township. So the army team sat down and started Planning. First, they plan how to go? At that time what obstacles will they face? And how will they pass all the obstacles. Suppose on the way they saw that the bridge blew up before.So what will the common people do in this situation? They would definitely become depressed and ask god what to do? But there is nothing to worry for the army because they have planned before that this kind of thing can happen. So already for the moment, the option to create a substitute bridge prepared by the engineer. Thus, many barriers would come but they came down in the field by making the alternative before. If we had given this responsibility we would take one pistol on our shoulder till Bridge and said “I forgive you for today”.
Exactly the same way we do trade. We are not ready for the changing situation of the market, so again and again our account is zero. Getting series of results need series of successive Work – a series of works can only be achieved through detailed planning.
Bank Forex traders, options traders and hedge fund traders get many facilities during the time of offline or at low volume trade. They can change the value of the currency when no trade does work, and finally results new traders get deceive while following the trade signal.
So it’s better to remain far during the market closing time or at low volume while only one signals remaining.
What should be in your trading plan?
1) Start and end of your trade strategy You will need to explain the situation before the start of trade. Under which circumstances will you take position (will do buy-sell), so you will need to explain. For your technical analysis, fundamental analysis or a combination of the two methods can be used. The situation of the market and the importance of public opinion should be.
2) Your money management policy which will reduce your loss. Ensure your existence by reducing the risk which can put you out of your business, is the main goal of your money management policy. Click here to learn about the Money management policy.
The following procedure should be included in your money management procedure.
– What will be the maximum amount of risk for each trade
– What is the maximum amount of risk for all positions will be introduced
– How much losses will occur in daily and weekly before closing trade !!!! But not profit, means for how much losses you are prepared.
3) your daily work planning- After the market closed, before start etc.
4) Weekly what works will you do, the new plan, strategy and so on.
5)what will you read daily,also should be kept on your remember list
“I have to run my trading following a trading plan- for this my work will be for patience and discipline”.
I always keep my trading plan simple.
- I’ll define my work in accordance with the trading plan, not because of greed, fear, or hope and ambitions.
- I will not deceive myself by changing my trading plan. Instead,I will accept my mistake and correcting it. The winner will be my attitude.”
- take own responsibility for your own work
- Don’t blame market or global event. Never blame market. Consider every mistake as your fault.
- Doing trade for better trade and loving trade, sometimes not for doing trade and not for money. Because if you do trade only for money then you will become emotional and do trade wrongly
- Do practice in the demo very well
- not for Profit. Trades for love. As when you play game in the computer you play it only for enjoy. Think the trade like that way.
- Try to make the right trade. Instead of seeing on the balance and loss or profit of terminal just focus on making the best trade.
- Don’t be influenced by seeing the benefits of others.
- Ever think that collecting money from market isn’t easy.
- Don’t try to do future planning or forecast because trading is a game of possibilities.
- Use your own common sense and remain calm. Do not be angry or disappointed.
- Restrain trading like an intelligent man.
- don’t calculate how much profit did you get or loss, focus on making good trade.
Than your life will become meaningful.