Uh oh! You’ve learned so much about FOREX trading and you've gone so far loosing Money and tired of Seminars, and yet nothing to show of. No, you’re not dumb, BUT you didn’t have a trading plan.
My point is that you can fill your mind with plenty of information, but without a good trading plan and the discipline to stick to it, you will NEVER be profitable.
Think of your trading plan as your map to success. It will be a constant reminder of how you will make money in this market. Of course it’s not required, and if you can make your living by trading without a plan, we will bow down and hail you as the Market Zeus of the Forex.
So you CAN trade without a plan if you want, but before you make that decision, let me give you a few reasons WHY you should have one.
REASON 1:.... IT KEEPS YOU IN THE RIGHT DIRECTION.
Consistency is very important to have in your trading routine because it allows you to truly measure how successful you are as a trader. If you have a sound trading system but always break your rules, how can you ever really know how good your system really is? Your trading plan will keep you on target. Read it every day and stick to it.
REASON 2:.... TRADING IS A BUSINESS AND SUCCESSFUL BUSINESSES ALWAYS HAVE PLANS.
I have never seen a successful business not start out with a plan. Do you honestly think McDonalds was just created on a whim and then magically became successful? I’m sure almost anyone can make a better hamburger than McDonalds , but the difference between them and the individual is that they have a successful business plan that guides them to success.
In the same way, you can relate the McDonalds story to your trading career....everyone can make money in the forex. However, the difference between a losing trader and a successful trader is the PLAN. If you have a good trading plan and you are disciplined enough to stick to it, you will be successful.....Now you know why you should have a trading plan. Let's find out what makes up a trading plan.
Trading plans can be as simple or complex as you want it, but the most important thing is that you actually HAVE a plan and you FOLLOW the plan. With that said, here are some of the essentials that every trading plan should have.
#1:... A TRADING SYSTEM.
This is the heart of your trading plan. This system should be one that you have thoroughly backtested, and have traded for at least 3WEEKS on a demo account.
#2:...YOUR TRADING ROUNTINE.
This is a crucial part of your plan because it will determine three very important things: when you will analyze the market and plan your trades, when you will actually watch the market to take trades, and when you will evaluate your actions during your trading day.
#3:...YOUR MINDEST.
Ask any trader out there and they will all tell you that one of the hardest things to do when trading is to take out your emotions from it. This section of your trading plan will describe what frame of mind you will be in when you are trading.
Example:
I will see what is on the charts and not what I want to see.
#4:...YOUR WEAKNESS.
Yes, we all have our weaknesses. We just don’t like talking about them. But ask yourself this, “How will you ever get better, if you don’t admit to what you need to work on?” This section will be an objective way to keep track of things that you need to work on in order to become a better trader.
Example:
I don’t stick to the rules of my system every time.
I don’t stick to my money management rules every time.
#5:... YOUR GOALS
To make a lot of money” is not a good goal in FOREX trading but is very important to make so much Money in FOREX. Sit down and really think about what you want to accomplish as a trader. Do you want to trade for a living? How much return can you realistically expect from trading based on your knowledge and experience? Your goals don’t even have to be about making money. Maybe you would like to be more disciplined or gain more confidence. These goals can be personal. What do YOU want to get out of this? Use these goals as your motivation when times get tough. These goals will be your vision, and you must always keep your eyes on the prize.
SELF-TURST IS THE FIRST SECRET OF SUCCESS.
*Goals of your trading system.
I know you’re saying, “DUH, my goal of my trading system is to make a billion dollars!” While that is a wonderful goal, it’s not exactly the kind of goal that will make you a successful trader.
When developing your system, you want to achieve 2 very important goals:
Your system should be able to identify trends as early as possible.
Your system should be able to avoid you from whipsaws(fake signals).
If you can accomplish those two things with your trading system, we GUARANTEE you will be successful.
There are many systems out there that work, but many traders lack the discipline to follow the rules and as a result, still end up losing money.
Your trading system should attempt to accomplish 2 goals:
Be able to identify a trend as early as possible
Be able to find ways to avoid whipsaws.
Contact Us To Get The Best Trading System SETUP You Will Ever Need.
Email:.. investmentquest At Yahoo Dot Com
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Account Number:.. 5156753
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