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Title: ForexSecret123 (6)


1
Forex trading plan why you need it and how to
make it?
  • If you want to be successful in forex trading you
    have to plan for the future. If you decide to
    enter the forex market without preparation, it is
    very unlikely that you will be successful in the
    long run. You have to learn what you are looking
    for. Experts always emphasize the importance of
    Forex trading. It not for the new traders only
    but also for the advanced traders.
  • This article will help you to understand the
    importance of Forex trading so that you can use
    it properly.

2
  • What is Forex Trading Plan?
  • The Forex trading plan is not different from any
    other trading plan. We try to give you an outline
    of trading activities. There will be some
    specific activities that you will follow. Once
    you have a proper guideline it will be easier to
    follow them and put them in your practical life.
  • A trading plan can help you to understand the
    market better and then you can apply it in your
    real life. A proper trading plan can help you to
    manage your trading decision in a batter way. A
    proper trading plan can save you from silly
    mistakes and also help you to evaluate your gain
    and loss.

Theforexsecret.com
3
Making a good forex Plan At the beginning
developing a plan is very simple. The first step
is to determine how frequently you want to trade
and how many trades you want to open per week or
par day. Then determine the duration of your
trade. This is very important, your plan should
indicate the time dimension you are going to use
on trading. If you want to be a day trader
you should plan for 24 hours. If your position is
near to a few days, it is better to have a plan
for over a week. Once you determine the day
trading it is better to consider a day or a week
as an aspect for your trading plan.
4
Theforexsecret.com
In a few cases, you have to use months which is
very unlike. For example, assume that you are a
day trader, So lets consider the day a unit of
our plan because most of the trader use the day
as a unit. Now add a few limitations to your
trading plan. Take the number of winning trades
and then multiply the amount to 1.2 which means
if a trader performs 20 trades on a daily basis,
on a day six traders are winning ones so a trader
should not trade more than seven times a day.
5
  • What about less opportunity

Normally when people hear about less opportunity
it has a negative connotation. But it is not
necessarily true when it comes to trading. In
order to understand the winning strategy, we have
to understand each and every opportunity in the
Forex market can bring profit and loss. Once
you decide to limit your trading to set a par day
trading, you have to focus more on trend
following. Every trade you put should be analyzed
very closely because with every losing trade you
will lose the opportunity to open a new trade
which could have been winning one.
6
In Forex there is no room for emotional trading
Another important reason for limiting your trade
is that people trade emotionally and lose their
money but when the market is going up they do not
have enough balance to trade. It is better not to
invest all your money in one trade. If you
invest half of your money, you can trade again
and compensate for the loss. This leads traders
to sustain for a long time in the market.
7
How to Prepare Trading Plan in Forex We are
trying to look at the importance of different
time dimensions for a proper trading plan. How
putting a limitation on your trade so vital. So
lets look at other time slots that will help you
to have a plan for the Forex market.
8
Entry signals in Forex Trading Many beginner
traders may have the same feeling with the ups
and downs of the market price. You want to jump
on something major is about to happen. But
suddenly you find yourself in an open position
and you do not know what to do in that situation.
This is a common problem with the beginner.
Every trading plan in the forex has a very clear
description of entry signals which you are going
to use on your trading strategy. Once you
properly jot down the signal, then your main work
is to stick to the plan. Signals should be as
descriptive as they can be.
9
Exit signals in Forex Business Every trader
should have a clear understanding of their exit
plan when it comes to learning how to prepare for
a Forex trading signals professionally. Opening a
trade-in right time on the right tools is very
essential. In some cases, it so happens that you
close a trade in a decent way and after that, you
lose a trade because you are not patient enough.

On the other hand, you might close a winning
trade too early and then miss the full Profit you
could achieve. This happens because you did not
have any exit plan. In order to make a proper
plan, you should have a clear understanding of
the profit and loss you could make in each
trade.
10
Stop Loss and Take Profit
As we have said every exit and entry signals are
vital. These signals help you to understand how
to trade using your strategy. The most important
thing is, every trade should maintain a stop-loss
and take-profit with it.
When you take your plan you should bear in mind
that Stop Loss is very important than Take
Profit. As a professional trader, you should use
stop-loss in every trade. You should not give any
excuse while using the stop-loss.
11
What fault we make in Forex Trading Plans Most
traders prefer setting up a trading plan which
has to be solidified on paper. The plan should be
very clear in your mind. The trading is not a
Shortcut or an instant guarantee for trading. In
fact, it is simple that you do not follow the
rule.
12
Conclusion The main thing is the trading
plan is theoretical in nature, they sound good on
paper but it cannot be compared with the intense
pressure of the market. From the traders point
of view step by step, the guideline is needed to
cover the gap between the trading plan in theory
and action. Use a proper demo account to develop
your strategy.
13
Thanks!
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