How to Write a CFD Trading Plan Example
The cfd plan is the systematic approach to cfd which controls all aspects of the trading.
If you trade cfd trading , you need a cfd plan template if you want to become a consistent winner and to be able to make cfd decisions fast & accurately.
Each cfd plan template will have its own cfd rules that have been set sets describing entry and exit cfd signals. The cfd rules set for each cfd system are converted into simple to follow instructions or a cfd checklist template that the trader can easily follow.
This cfd checklist template will direct the whole trading process of trading - controlling the timing of the trade entries & exits ( cfd system) , the value of the opened cfds trades in relation to the cfd account balance ( cfd money management system) and the emotional state of the trader (emotion management system). The resultant trade details should be recorded in the trading journal cfd log and later studied for the ideas on how to improve each of the cfd trading systems.
Trading is often compared to business. If cfd is business then the cfd plan is your business plan which should be prepared before you start trading with the real money. The better you prepare this cfd plan - cfd checklist template, the more success you can expect to achieve in real cfd.
CFD Plan Template
To write a good cfd plan, you will need a good cfd plan template that as a trader you can use to come up with your own cfd plan. But before you download the cfd plan, here is an explanation of the various cfd plan cfd checklist sections that your cfd plan requires to have.
JUSTIFICATION
This part of your cfd plan will write why you require a cfd plan, one of the reason is that cfd is a business.
CFD TRADING SYSTEM
This is the cfd plan part where you include your cfd system. In this section you will write the cfd indicators to trade with, then you will write the cfd system rules that you will generate the cfd signals with.
For more guides about cfd systems
TIMEFRAME
This is where you specify which is the main cfd chart time-frame that you will be trading with.
TRADE ROUTINE
This is the part as a trader that you have to specify the time when you will be trading the cfd market and when you generate cfd signals and how these cfd signals should be generated. For example:
- Signals are generated using 1H cfd chart timeframe.
- Signals to be executed immediately rules are met.
- Entry signals should be executed during daytime.
TIME OF DAY TO WATCH MARKET
Watch market during daytime & trade only during the best cfd hours
MONEY MANAGEMENT
This is the part where as a trader you will specify the cfd money management rules that you will follow, for example:
- Day trading -Low risk High return method
- Trade when I have a high risk to reward ratio 3:1 or more
- Stop loss = Parabolic SAR
- Set TP target 100 CFD Pips
- Never trade beyond 3 % of cfd account balance
- Never risk more than 2% on a single cfds trading trade
To learn & know more about cfd money management
MINDSET/PSYCHOLOGY
This is the part you specify about your cfd psychology rules
- Trade without Emotions (greed, fear, anticipation, impulse, bias, over-excitement)
- I trade what my eyes see not what I feel.
- I will be patient.
My job is not to be the cfd system!
It is not to decide which trades looks promising.
CFD Psychology Rules and Tutorials:
WEAKNESS
By writing down your weaknesses you will start recognizing them as you trade, once you do this you will start to avoid this mistakes & your trading will improve.
For Example
- I am greedy.
- I overtrade
- Make a list of all your weaknesses that are interfering with your trading. This is first step to help you overcome these weaknesses. Use trading psychology to help you overcome them.
GOALS
Write the goals you want to achieve with your cfd plan
·To focus on exit just as much as I do on entry.
·Always protect my account using stop-loss, cfd money management methods, trading with the cfd trend and always following the rules of my cfd system & trading plan.
·Never second guess or go against my cfd trading system.
FOLLOW THIS SYSTEM
This is the most important part of creating the system.
·Always follow the rules
·Stick with the rules
·Be disciplined & patient enough
JOURNAL
Log all my trades in a journal so as to track my progress. Write your CFD Trades on a cfd journal to track progress of your trading.
