Forex Forums |

Go Back   Forex Lasers Forum > FOREX TRAINING > Forex Articles

Developing a trading plan

Forex Articles

LinkBack Thread Tools Search this Thread
Old 13-03-2017, 18:11
Join Date: Mar 2014
Posts: 979
Default Developing a trading plan

What is a trading plan?

A trading plan is a structure, or a set of guidelines, to define your trading activity. It can be an extremely useful tool to help you focus on planning and executing your trading strategy.

There is no absolute blueprint for the perfect trading plan – every trader is unique, and different styles suit different people – but there are certain universally accepted elements to consider when building your own plan.

Your road map

You can think of a trading plan as a road map; a route to take you from where you are to where you want to be.

Metaphorically speaking, it is important to have a very clear and honest picture of both of these ‘places’ in mind.


Where are you now?
What sort of trader are you now?
What knowledge and experience do you have?
How much capital do you have to trade with?
Where do you want to be?
What do you want to achieve with your trading?

What sort of timeframe do you have?

What will success look like?

Another way to look at a trading plan is like a business plan. You wouldn’t start a business without a business plan – why would you want to start trading without a trading plan?

General trading plan rules

While it is true there is no absolute blueprint to constructing the perfect trading plan, there are a few general rules that will be extremely useful in almost all cases.

1. Write it down. You should write down things like your reasons for trading and the key objectives that you hope to achieve. This will help you organise your thoughts, as well as giving your plan solidity.

2. Record your progress. Develop a clear and concise method of recording your trades. It is critical in planning a long-term strategy to be able to view your past and present trades, both from a learning perspective but also to keep track of which markets you are, and have been, exposed to.

3. Control your finances. Money management is a third crucial element of any trading plan. You need to have a plan for managing your investments, especially your exposure to risk.

You can use the trading diary within market insight to keep all your notes in one place. You can add notes and charts whenever you open, close or alter a position or order.

Reply With Quote
Old 17-03-2017, 22:23
Level 1 Lasers Member
Join Date: Mar 2017
Posts: 8
Default Re: Developing a trading plan

The necessary part to make your trading plan is to know your trading style, most of trader are going against the market when they see new top or bottom, but the trader must choose his style against or in accordance with the market movement.
Reply With Quote

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

Similar Threads
Thread Thread Starter Forum Replies Last Post
The Importance of Developing Your Own Trading System ForexArticles Forex Articles 1 18-02-2017 15:25
Trading Plan Tips ForexArticles Forex Articles 0 11-08-2016 07:45
Developing a Trading Mentality ForexArticles Forex Articles 1 30-07-2015 18:43
Developing a Forex Trading Plan 2 ForexArticles Forex Articles 1 09-07-2015 16:04
Developing a profitable forex trading strategy brain22 Forex Discussion 2 05-01-2015 07:38

All times are GMT. The time now is 08:26.

Powered by vBulletin® Version 3.8.10
Copyright ©2000 - 2021, vBulletin Solutions, Inc.