How To Develop Your Forex Trading Plan?

The first thing that you must develop is your forex trading plan. Fail to plan and plan to fail. This is what you should keep in your mind. Begin by writing down a rough forex trading plan that comes to your mind. Start off by writing what your goals are with forex trading. Once you have clearly stated your goals, you should describe the strategy or the system that you will be using in achieving your goals. The most important part of the trading plan is where you deal with the risk and money management part of your strategy.

For example, suppose you want to make 50 pips daily with a small stop loss. Now you need to specify how much should be the stop loss per trade on average. Suppose, you think that you will be able to make 50 pips daily with a stop loss that is 20 pips. Making 50 pips daily is not difficult especially if you are trading during the London or the NY Session. So what you should clarify after stating that you want to make 50 pips daily is what time of the day you will be trading. Suppose, you are living in NY. So you will find it more easy to trade the NY Session. Watch this video below that explains why it is necessary for you to write a detailed forex trading plan.

Once you have written down a rough forex trading plan that says that you are going to be making 50 pips daily with a stop loss that is not more than 20 pips during the NY Market Session. Once you have the rough sketch, you need to refine it further. Trading plan is like a blueprint or a road map that is going to show you how you are going to achieve your financial goal ultimately. Now you need to specify the exact forex strategy that you will be using for achieving your goal of making 50 pips daily. Take your time to develop a good forex trading plan because your ultimate success as a forex trader depends on developing a good trading plan. Once you have your trading plan continuously strive to tweak it and perfect it more. You can also download this 71 page report: How To Design And Construct Your Trading Plan FREE that has been written by Norman Hallet that explains how you should develop your winning trading plan. Go through this 71 page report. It applies no matter what market you trade but since we are talking about developing solid forex trading plan, it will help you in developing a solid forex trading plan.

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