Forex Trading Plan Sample - How to Write a Forex Trading Plan Example

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

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

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

This forex trading checklist template will direct the whole trading process of trading - controlling the timing of the trade entries and exits (forex trading system) , the value of the opened forex trades in relation to the forex account balance (money management system) and the emotional state of the trader (emotion management system). The resultant trade details should be recorded in the trading journal forex log and later studied for the ideas on how to improve each of the forex trading systems.

Trading is often compared to business. If forex trading is business then the forex trading plan is your business plan which should be prepared before you start trading with the real money. Better you prepare this forex trading plan - forex trading checklist template, the more success you can expect to achieve in real forex trading.

Forex Trading Plan Template

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

JUSTIFICATION

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

FOREX TRADING SYSTEM

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

For more tutorials about forex trading systems

· Forex Trade Systems

· How to design Forex Trading Systems

· How to Write Forex Trading System Rules

· Generating Signals

· Tips for Forex Trading Systems

· Forex Trade Journals.

TIMEFRAME

This is where you specify which is the main forex chart time-frame that you will be trading with.

• Types of Forex Traders - Forex Day Trading & Swing Trading

TRADE ROUTINE

This is the part as a trader that you have to specify the time when you will be trading the forex market and when you generate forex trading signals and how these forex signals should be generated. For examples:

1. Signals are generated using 1H forex trading 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 forex hours

MONEY MANAGEMENT

This is the part where as a trader you will specify the forex 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 forex account balance
• Never risk more than 2% on a single FX trade

To learn more about forex money management

• Forex Money Management
• Money Management Methods

MINDSET/PSYCHOLOGY

This is the part you specify about your forex 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 trading system!

It is not to decide which trades looks promising.

Forex Psychology Rules and Tutorials:

• Forex Trading Psychology
• Forex Trading Psychology & Emotions
• Forex Trading Psychology Principles
• Forex Trading Psychology Rules

WEAKNESS

By writing down your weaknesses you will begin recognizing them as you trade, once you do this you'll 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 overcome these weaknesses. Use psychology to help you overcome them.

GOALS

Write the goals you want to achieve with your forex 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 & trading plan.

·Never second guess or go against my 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 Forex Trades on a forex trading journal to track progress of your trading.

· How to Write a Forex Trading Journal