What is the difference between Trading Strategy and Trading Plan?
In achieving success in foreign currency or forex investments, you need to have careful planning such as analyzing market movements. Calculating the number of lots you will use and many more.
There are two things that you must have before making transactions in the forex market, Trading Plan and Trading Strategy.
Then what is a Trading Plan and Forex Strategy ?
Trading Strategy is a collection of rules that contain how you will enter and exit when trading. A trading strategy has short rules when you analyze the market.
For example, when the market is sideways / flat. You will analyze using Bollinger band strategies or price pattern patterns. Whereas the trend market you will analyze using the Moving Average strategy.
The Trading Plan is a complete plan that includes a trading strategy. And also the profit / loss calculation that you have prepared. The time period you will use (long term / short term). And calculation of lots that you will use and other money management.
If you are a retailer, there are important things you need to pay attention to. The Trading Strategy and Trading Plan are documents that you must have. That is when you decide to invest in the forex market.