How to make a mature trading plan
You must have often heard, if every trader must have a mature trading plan to then follow it. Then how to make careful planning then follow it? Many traders make the mistake of using something on paper as a guide. Of course this is amazing, it’s just that the reason why trading plans can win causes many people to object to “Why”, and not “How”.
Knowing “why” you do is not wrong, it’s just that knowing “how” is the key to avoiding general trading. Some people think if that happens, then only that trader needs to plan his trading plan . This is important to emphasize the number of traders who have a pretty good analysis point and are good enough to know which direction their trading should run. Then the problem is, even though you feel this is enough, unfortunately this does not make enough people with money, because they will fall on execution.
To overcome the final trading hurdles, and get out of trouble, the written trading plan will really help.
INITIAL QUESTIONS FOR ANSWERS
- Will you try to use money? Do you believe that the direction of the Forex market can be predicted? If so, how? Are you going to follow trends, returns, or a combination of both? Will you use fundamental analysis and sentiment analysis or pure?
- How much money do you want to get and can you risk Forex trading in your tranding plan?
- Which is the best between forex brokers or the size of your account, country of residence, or nationality and style of trading?
- Will your risk management strategy succeed? What stop loss can you wake up?
- Re-create several types of tests, including calculating the best case, worst case, and average case scenario for your trading account. Can you handle the worst case?
- How many pairs of currency will you trade? How many trades will you have openness at one maximum time?
- How much wisdom do you have in allowing yourself to choose a currency pair, opening trades, and closing trades? How much will you follow the hard and fast rules?
- Do you manage trading openly?
- How much time do you devote to trading? Will you be a swing trader, day trader, trader position or some combination of that?
WRITE YOUR TRADING PLAN
Starting a tranding plan the first thing you have to do is cover everything in writing. So the trading plan to win must also contain the following:
- How do you have to decide on a partner for trading.
- Maximum position at risk you can get at any time.
- Your daily, weekly, or monthly loss limit has been set (for example 0.50% of capital will be lost per trade, and stop trading on the remaining days).
- Trading strategies entered, including positions and stop losses.
- Will you manage trading openly and actively.
- Trading strategy comes out.
- Where you will use your own wisdom.
- How often will you review your own trading.
REVIEW YOUR TRADING PLAN
At the end of each trading session, if you are a trader day, or weekend, you must take notes and focus on several things. Also note whether the “trading plan winner” is covered by everything that happens. There are times when you will feel unsure of what is done. If this happens you have to change the trading plan.Think about what other ways you can do. It’s just that in forex trading losses are inevitable, but can be managed at a certain time limit. Also read how to use the fire line to increase your forex winning ratio!