Steps to Making a Forex Trading Plan
Before you start reading this post, you are required to follow all instructions in order. The points will be very important later and help you to start trading correctly.
To make a trading system that suits your own needs, there are several stages that must be passed. Everything you have to do, because all of these stages will be important and should not be taken away. Must be in sequence!
Now you look at the picture below. Here are the important points that I mean to form a weapon that you need to enter in the forex market.
1. Determine Your Forex Trading Style
First of all, you have to check your own personal, to find out what type of trader you are, whether it’s a Scalper, day trader, Swing trader, Breakout trader and many more.
2. Determine what you will trade forex
Then you have to determine what you are trading. You can’t trade with all pairs. Look for what you think is right for you, whether it’s a high-moving pair like GBP / JPY or is usually stable like NZD / USD. If you have difficulty choosing pairs, maybe this article can help you in choosing a pair; Choose the right forex pair for you.
3. Determine how to detect forex trends
You need to know how to detect trends. Trading by driving along with the current trend will be more profitable than you against the trend. You can learn how to identify trends in articles: Forex Trader Lessons About Price Action.
4. Determine Open Position rules
You must determine the rules for opening positions. so do not arbitrarily open a position. If there is no signal in your trading system, never try to open position.
You can find a trading system reference on the Forex Trading Strategy Collection page.
5. Specify the Close Position rule
The next step you have to determine the rules for close positions. This is to increase your profits and minimize risk. So you are not careless when determining your position. This point returns to the fourth point, which is in accordance with the trading system you are using.
6. Determine risk management
Here we will discuss fund management or Money Management. If you talk about managing funds, of course you can’t get out of using lots. Adjust the lot size with the size of the capital on your trading account. To discuss money management or the use of suitable lots, please read on the Forex Money Management page.
9. Write the rules and FOLLOW
Well, at this point it’s very difficult to practice. Later we will discuss more deeply.
10. Test the trading system
After you find a weapon. You should try the weapon in the training arena, not jump into the real battle. It would be nice for you to open a Demo Account first to practice all the knowledge you have and also look for experience in trading in forex trading.
Now the points above are very important to do. Now your task is to practice one by one and carefully so that you will have a weapon ready to be used on the battlefield and bring victory to you.