Sunday, March 5, 2017

Developing a trading plan

Today I will show you the helpful tips for traders on developing a trading plan. As a trader, you need to have your own trading plan.

What are your trading strategy?

Setting your trading strategy is one of the most important steps in developing a trading plan. 

Many beginners do not know the trading strategy. On the one hand,they never start demo trading.

Now you have to start demo trading and get detailed analysis of your trading reports from MetaTrader 4. Therefore you can improve your trading strategy.

I like to use grid trading strategy. Many traders call it martingale strategy.

I believe that it needs huge capital. So I will pick the daily chart, focus on one currency pair and use 0.01 to 0.02 lots for a $3000 account.

For example I will set up a grid on USDJPY and select the daily chart.



The order book would look like this: 
  • 22 September buy limit 0.01 @ 100.16
  • 22 September buy limit 0.01 @ 100.11
  • 22 September close 0.01 @ 100.5
  • 22 September close 0.01 @ 100.70 
  • 26 September buy limit 0.01 @ 100.82
  • 27 September close 0.01 @ 100.85
  • 3 October buy limit 0.01 @ 101.37
  • 3 October close 0.01 @ 101.39
  • 5 October buy limit 0.05 @ 103
  • 5 October close 0.05 @ 103.04 (I am over-trading)
  • 5 October buy limit 1 @ 103
  • 5 October close 1 @ 103.02 (I am over-trading)
  • 13 October buy limit 0.01 @ 103.77
  • 13 October buy limit 0.01 @ 104.47
  • 13 October buy limit 0.01 @ 104.1
  • 14 October close 0.01 @ 104.1
  • 14 October close 0.01 @ 104.18
  • 26 October close 0.01 @ 104.55
What type of trader are you?

Many traders do not know what type of trader they are. Therefore you should start demo trading and get detailed analysis of your trading reports from MetaTrader 4.

I am a swing trader and hold trades for a few hours to a few days. Sometimes for a few weeks.

Therefore, what type of trader are you? Day-trader? Swing-trader?


What are your trading goals?

In fact, some successful trader will earn 10% per month. 

However my trading goals are earn 10% per year, stick the stock trading plan, remain disciplined, avoid over trading.

Many stock traders don't have sufficient cash in account. Therefore I will fund my trading account with $100000.

These are my tips for traders on developing a trading plan.

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