How Do I Interpret Forex Trading Plan?
How Do I Analyze a Forex Trading Plan?
trading plan checklist - the following is a template examples of a forex trading plan template example:
JUSTIFICATION FOR FOREX TRADING PLAN
1. Forex Trading IS A BUSINESS, SUCCESSFUL BUSINESSES ALWAYS HAVE PLANS
- Businesses that are successful always begin with a plan.
- Successful business planning will guide you to success, think of your forex trading plan as a map: it is a constant reminder of how you'll consistently pull profits from the forex market.
- Difference between a successful trader & a losing trader is the forex trading plan.
2. TO KEEP ME AS A FOREX TRADER IN THE RIGHT DIRECTION
Consistency is important in your forex trading routine to measure how successful you are.
Keep you on target, read the forex trading plan everyday, analyze the forex trading plan everyday, and stick to its written forex trading rules.
When it comes to your forex trading plan you should think of your forex trading plan as a map that shows you as a trader this is what you follow, your forex trading plan should have clear written forex trading rules that specify when you open a forex trade or close a forex trade.
Your written forex plan should cover all factors of forex trading, you should read and analyze the forex trading plan every day until the rules of your forex plan are on your fingertips so that when you are trading on the fast moving forex market you will always know what to do in every situation.
This how to analyze forex trading plan tutorial provides an example written forex trading plan which you can use for creating your own forex trading plan.
Forex plan is one of the forex trading tips that can help you as a forex trade to improve your forex trading results. A good learn forex training guide like this one - www.tradeforextrading.com - should explain to you how to create a forex plan which you can use for forex trading.
IF YOU HAVE A GOOD FX Trading PLAN AND ARE DISCIPLINED ENOUGH TO STICK TO IT When Forex Trading YOU WILL BE SUCCESSFUL.
GOALS OF THE FOREX TRADING SYSTEM
- Ability to IDENTIFY A FOREX TREND AS EARLY AS POSSIBLE .
- Ability to AVOID FOREX WHIPSAWS .
The forex trading system should find a compromise between the two goals of the forex trading plan,
Find a method to identify a forex trend as early as possible but also find ways to help you differentiate the fake whipsaw signals from the real forex signals.
FUNCTIONS OF EACH FFOREX INDICATOR
Moving Averages - Identify a new forex trend as early as possible.
MACD - Identify a forex trend as early as possible.
Determine strength of a continuing forex trend.
RSI - 50 center line crossover trading signal to confirm the begin of a new forex trend.
Extra confirmation forex indicator to help figure out the strength of our forex trend.
To learn forex indicators & how to generate forex trading signals with forex indicators Learn Forex Indicators Section
FOREX CHART TIME FRAMES
- Main forex chart time frame is the 1H.
- Forex Signals are generated on 15 minutes chart time-frame.
15 Minute Forex Charts
- 5 & 7 LWMA
- RSI (14)
- MACD Indicator
FOREX TRADING RULES
BUY FOREX SIGNAL
15 Minute Forex Charts
- Both Moving Averages are moving UP
- MACD Above Zero Center Line (Not MACD moving UP)
- RSI >-> 50
When forex trading buy signal is generated on the 1 Hour forex chart time frame - use the 15 minute chart time frame to open and close forex trades.
LONG EXIT
- RSI gives opposite signal
FOREX TRADING RULES
SELL FOREX SIGNAL
15 Minute Forex Charts
- Both Moving Averages are moving DOWN
- MACD Below Zero Center Line (Not MACD moving Down)
- RSI <-< 50
When a sell signal is generated on the 1 Hour forex chart time frame - use the 15 minute chart time frame to open and close forex trades.
SHORT EXIT
- RSI gives opposite signal
FOREX TRADING ROUTINE
- Forex Trading Signals are generated using 1 Hour forex chart time frame and executed on the 15 minute chart time frame.
- Forex trading signal to be executed immediately forex trading rules are met.
- Entry forex trading signals should be executed during daytime.
TIME OF DAY TO WATCH MARKET
Watch market during daytime when most traders are online. Use this forex trading plan to come up with a suitable forex trading schedule.
Forex Trading Plan Example
How Do You Interpret a Forex Trading Plan?
FOREX MONEY MANAGEMENT
- Day trading
- Only trade forex when I have a high risk to reward ratio 3:1 or more
- Stop loss = Parabolic SAR
- Set Take Profit target 40-60 Pips
- Never trade beyond 3 % of account equity
- Never risk more than 2% on any single forex trading transaction
FOREX MINDSET/FOREX PSYCHOLOGY
- Trade forex 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 isn't to be the trading system!
It is not to decide which forex trading signal looks promising.
That is the job of my forex system - that has a set of forex trading rules which tells me this is what I follow when forex trading. Do not get caught up in forex price action and make forex trading rules as you go along.
MY JOB DESCRIPTION IS
To sit patiently & wait for my forex trading strategy to indicate that it is time to enter or it is time to exit a forex trade. And then with great focus I execute forex plan as outlined.
Taking forex trades not indicated by the forex system, second guessing it and not taking forex trading signals given, hesitating and getting in late, anticipating and getting in early are all common place and boil down to lack of faith in the forex trading plan & not having a burning focus on accurate forex trading plan rules execution.
FOREX GOAL: To have 100% undivided focus on mastering my ability to execute my Forex trading rules accurately.
The more you develop the ability to step back from forex price action movement and watch the forex market dispassionately, waiting for a forex trading signal, the easier it will be to witness the fluctuations of your emotions without getting sucked into them allowing them to throw you off your forex trading game.
WEAKNESS
- I am greedy.
- I over-trade
- Make a list of all your weaknesses that are interfering with your forex trading. This is the first step in trading to help you overcome these weaknesses. Use Forex psychology to help you overcome them.
Note: by writing down your weaknesses on your forex trading plan you will begin recognizing them as you make progress, once you do this you'll start to avoid this trading mistakes and your forex trading results will improve with time.
GOALS
- To focus on exit just as much as I do on entry forex signals.
- Always protect my forex trading account using forex stop loss, forex money management methods, follow with the forex trend direction and always following the rules of my forex trading strategy.
- Never second guess or go against my forex trading strategy. To always keep up my discipline in forex trading.
- Follow all the rules of forex trading system + forex charts are telling me.
- Sit patiently & wait for forex trading signals from my forex trading strategy.
- Achieve consistent forex trading results before opening a live forex account.
FOLLOW THE RULES OF THIS FOREX TRADING SYSTEM
This is one of the most important part of how to create a forex trading system.
Always follow the trading rules
Stick with the trading rules
Be disciplined & patient enough
FOREX TRADING JOURNAL
Write all forex trades in a forex trading journal so as to keep track of your trading progress when using your forex trading plan.
How Do You Analyze a Forex Trading Plan? - How Do I Trade Trading Forex with a Trading Plan? - How Do You Read a Forex Trading Plan? - How Do I Analyze a Forex Trading Plan?
Even if you are new to forex trading and you do not know how a forex trading system works, this forex trading system tutorial shows to you how a forex strategy should look like.
Hence, the aim is to help you come up with your own complete forex trading strategy - by showing you a written forex trading plan examples that is already complete.
Read this forex trading plan tutorial about how to trade forex with a forex trading plan - One of the most important part of using this forex trading plan template is the "Money Management Part" you will learn how to trade and minimize risk using forex money management rules, which will be specified in your forex trading plan.
How Do You Interpret a Forex Trading Plan?
