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