Trade Forex Trading

Forex Plan Sample - How to Write a Plan Example

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

If you trade forex, you need a 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 rules set for each system are converted in to simple to follow guide-lines or a trading checklist template that the FX 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 trade positions relative to the account balance (money management system) and the emotional state of the trader (emotion management system). The resultant trade details & particulars should be recorded in the journal log and later studied for the ideas on how to improve each of the trading systems.

Trading is often compared & analyzed 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 checklist template, the more success you as a trader can expect to achieve in real forex trading.

Forex Plan Template

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

JUSTIFICATION

This part of your trading 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'll write the indicators to trade with, then you'll write the system rules which you will generate the signals with.

For more lessons about trade systems

· Trade Systems

· How to design Systems Strategies

· How to Write Strategy Rules

· Generating Signals

· Tips for Systems Trading Strategies

· Journals.

TIMEFRAME

This is where you specify which is the main chart time frame 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 trade signals and how these trading signals should be generated. For examples:

  1. Signals are generated using 1 Hour chart time frame.
  2. Signals to be executed immediately the trading rules are met/matched.
  3. Entry signals should be executed during the day-time.

TIMELINE OF DAY TO TRADE MARKET

Watch market during daytime & trade only during the best hours

MONEY MANAGEMENT

This is the part where as a trader you will specify the money management rules that you'll follow, fore example:

  • Day trading - Low risk High return method
  • Trade when I have a high risk reward ratio 3:1 or more
  • Stoploss = Parabolic SAR

  • Set TP target 100 Pips
  • Never trade beyond three % of account balance
  • Never risk more than 2 % on a single trade

To know more about money management

MINDSET/PSYCHOLOGY

This is the part you specify about your mindset 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 trade system!

It's not to decide which trade positions looks promising and which doesn't.

Forex Psychology Rules and Tutorials and Lessons:

WEAKNESS

By writing down your weaknesses you will start recognizing them as you trade, once you do this you'll start to avoid this mistakes and your trading will improve.

For Example

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

GOALS

Write the goals you as the trader want to achieve with your plan

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

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

·Never second-guess or go against my system.

FOLLOW THIS TRADING SYSTEM

This is the most important part of making the trade system.

·Always follow the rules

·Stick with the rules

·Be disciplined & patient enough

JOURNAL

Log all my trade positions in a journal so as to track my progress. Write your Trades on a trading journal to track the progress of your trading.

· How to Write a Trade Journal

Learn More Topics & Courses:

Forex Malaysia Seminar

Forex Thailand Seminar

Forex Broker