Many beginners just want to find a few trading rules, so they never even create a trading plan. In fact, veteran trading will make a detailed trading plan. Today I will show you how to create a trading plan.
First, why would you want to trade? Rookies would like to buy a new car or an Iphone. But I want to learn how to trade and improve my trading performance.
Second, what a real trading goals? Rookies are expecting to get 10 times return per year. In fact, experienced traders are able to get 10% per year.
Third, which stocks, currency pairs, Exchange-traded fund, futures or options to trade? Novice traders are focusing on too many trading markets. But veteran traders will focus on forex trading and only choose one currency pair. Therefore, I will just trade AUDUSD.
Fourth, how much can you afford to trade? Many beginners just have $100, but they want to double their live account. It is obviously impossible! A professional forex trader will open an account with at least $10000.
Fifth, what is a Forex trader's morning routine?
Eighth, rookies never maintain a trading journal. So I will keep a forex trading journal excel. I think it is important to update it every evening.
Finally, now I have created a trading plan, but it may not fit your trading strategy. So you should make a trading plan for your personality.
First, why would you want to trade? Rookies would like to buy a new car or an Iphone. But I want to learn how to trade and improve my trading performance.
Second, what a real trading goals? Rookies are expecting to get 10 times return per year. In fact, experienced traders are able to get 10% per year.
Third, which stocks, currency pairs, Exchange-traded fund, futures or options to trade? Novice traders are focusing on too many trading markets. But veteran traders will focus on forex trading and only choose one currency pair. Therefore, I will just trade AUDUSD.
Fourth, how much can you afford to trade? Many beginners just have $100, but they want to double their live account. It is obviously impossible! A professional forex trader will open an account with at least $10000.
- I will set a Forex trading checklist at 7:50.
- If I am a day trader, I will check the forex economic calendar.
- I will review the Forex trading plan and diary at 8:15. It helps in reaching an optimal mental state.
- At last, I will clean the Forex trading room at 8:30.
- I will use the time frame analysis to find the entry and exit points
- I will use a trend line to identify the dominant trend on the weekly chart.
- If I want to trade with the day trading strategy, I will find the general trend on the daily chart.
- Once I have determined a trending market, I will trade with the moving average strategy.
- If a trend is not present on the weekly chart, I will use buy low and sell high strategy.
- I will use the grid trading strategy to increase and reduce the size of the positions
Eighth, rookies never maintain a trading journal. So I will keep a forex trading journal excel. I think it is important to update it every evening.
Finally, now I have created a trading plan, but it may not fit your trading strategy. So you should make a trading plan for your personality.
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| set a trading plan, write your trading goals |
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