Forex Plan Sample - How to Write a Plan Example

The trading plan is logical approach to trading which controls all aspects of the trading.

If you trade forex, you need a trading plan template if you want to become a consistent winner and to be able to make decisions fast & accurately.

Each trading plan template will have its own forex rules that have been set sets describing entry and exit signals. The trading rules set for each system are converted into simple to follow instructions or a trading checklist template that the trader can easily follow.

This trading checklist template will direct the whole process of trading - controlling the timing of the trade entries and exits (trading system), the value of the opened trades in relation to the account 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 often compared to business. If forex trading 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 trading plan - forex trading checklist template, the more success you can expect to achieve in real forex trading.

Forex Plan Template

To write a good forex plan, you will need a good forex plan template that as a trader you can use to create your own forex plan. But before you download the plan, here is an explanation of the various trading plan forex trading checklist sections that your plan requires to have.

JUSTIFICATION

This part of your plan will write why you require a trading plan, one of the reason is that forex trading is a business.

FOREX TRADING SYSTEM

This is the plan part where you include your system. In this section you will write the indicators to trade with, then you will write the system rules that you will generate the signals with.

For more tutorials about trading systems

· Trade Systems

· How to design Systems Strategies

· How to Write Strategy Rules

· Generating Signals

· Tips for Systems Strategies

· Trade Journals.

TIMEFRAME

This is where you specify which is the main chart timeframe that you'll be trading with.

• Types of Traders - Day Trading and Swing Trading

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 examples:

1. Signals are generated using 1 Hour chart time frame.
2. Signals to be executed immediately rules are met.
3. Entry signals should be executed during daytime.

TIME OF DAY TO WATCH MARKET

Watch market during daytime & 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, fore 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 know more about money management

• FX Equity Management
• Equity Management Methods

MINDSET/PSYCHOLOGYMINDSET--and--PSYCHOLOGYMINDSET--&--PSYCHOLOGY

This is the part you specify about your psychology rules

• Trade without Emotions (greed, fear, anticipation, impulse, bias, over-excitement)
• I trade what my-eyes see not what I feel.
• I'll be patient.

My job description isn't to be the system!

It's not to decide which trade transactions looks promising.

Forex Psychology Rules and Tutorials:

• Trade Psychology
• Forex Psychology and Emotions
• Trade Psychology Principles
• Forex Psychology Rules

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

1. I am greedy.
2. I overtrade
3. Make a list of all your weaknesses that are interfering with your trading. This is the first step to help you to over-come these weak-nesses. Use psychology to help you as a trader overcome them.

GOALS

Write the goals you want to achieve with your trading plan

·To focus on exit just as much as I do on entry.

·Always protect my account using stop loss, money management methods, trading with the trend and always following the rules of my trading system and plan.

·Never second guess or go against my system.

FOLLOW THIS TRADING SYSTEM

This is the most important part of making 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 Trades on a trading journal to track progress of your trading.

· How to Write a Trade Journal