Thread: How can I develop a Forex trading plan?

A trading plan is a collection of rules used to explain trading activities. It can be a very useful tool in assisting you to plan and execute your entire trading strategy.

There is no one-size-fits-all trading technique; each trader is unique, and different sorts suit different people. However, there are several universally agreed components to consider while developing your own strategy.

Writing a trading plan is a vital step toward becoming a successful Forex trader. A trading plan's goal is to help you commit to trading guidelines so that your emotions are not affected. You are more prone to make trading mistakes, over-trade, or make impulsive actions in volatile markets if you do not keep a trading notebook. Here are ten checklists to consider while developing a trading plan.

10 Steps to Creating a Trading Plan

• Choose which currency pairs to concentrate on.
• Keep an eye out for big news releases.
• Choose your preferred timeframe.
• Examine the market to see if it is in a trend or a range.
• Determine the areas of support and resistance.
• Based on your plan, determine if you want a short or long setup.
• Stay out if the strategy rules do not fit.
• Execute if the strategy rules are met.
• Determine the strategy's entry and exit prices.
• Calculate lot size based on a 2% risk.

Summary

The key to success is to stick to your trading plan on a daily basis. If the deal does not match all of the trading conditions, pass on it. Follow the rules rather than your instincts. You are not permitted to engage in a trade based on your emotions. This is a huge step forward in terms of maintaining consistency on your forex trading route and avoiding emotional trading.

Planning and preparation are things that must always be applied before starting trading, because by preparing everything and making careful planning, trading will feel comfortable and safe, this is also what I always apply with the Tickmill broker.