Improve Your Trading Results By Creating A Trading Plan
In order to succeed trading Forex, every trader must create and follow a trading plan that will help him systemize his trading activity:
Market's analysis
Making a trading plan
Entering the market, opening a trading position
Closing a trading position
Analysis of the trading results.
Market's analysis. Your goal is to find a good situation to enter the market. In order to do that you can use either fundamental or technical market's analysis tools to understand the market and find the entry moment. This stage is very important as the success of your trading depends on your decision and the ability to find an entering moment that has high potential to make profit. To find this moment requires a lot of practice and trading skills.
Creating a trading plan. After you have found a potentially good situation to enter the market, you can proceed to creation of the trading plan. According to the market's situation you decide on the conditions you open a trading positions, its reasons, and tools that will help you to open and carry a trading position. Levels of stop loss and take profit orders. Risk management for your position that includes the size of transaction, the balance of free margin, leverage, etc. The possible conditions for changes of your trading plan.
Entering the market. The plan you have written will play a role of a direct instruction for actions and will relieve you from stress and emotional pressure while opening a trading position. What you need to do is just to follow your own instructions for opening the trading positions and placing the stop loss and take profit orders.
Closing of a trading position. This is a moment, when you need to close a trading position according to your plan. It may be executed manually by yourself or achieving a take-profit order. Whatever method of closing a trading position you choose, here is a time for the last stage of trading.
Analysis of your trading activity. When transaction is closes and there is no any reason for pressure and stress, it is a time to analyze your action regardless to the results of your trading. Try to pay attention to the following points. Did you include everything to your trading plan? Have you found new circumstances that must be considered in the future? Did you follow the plan? Answering these questions will help you improve your trading strategy and make it more successful.
Now you can understand what a successful Forex trading means. Most of the time trading is a tedious work and not everyone is able to do that. Only for the diligent work you get rewarded, otherwise your funds will be lost. If you don't afraid of the difficulties, start acting now. For the beginners who don't have a trading account yet, we recommend to start from choosing a good broker to open a trading account and practice in demo before trading for real money. There are many Forex brokers around that are legitimate and trustful.
Improve Your Trading Results By Creating A Trading Plan
By: Daniel Shaw
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