What is Forex Trading Plan?
Success depends on a flawless plan. The plan alone will not yield result. It must be implemented. Before implementing the plan it must be simulated with virtual trading.
Why Have a Forex Trading Plan?
- It will lead you to take right direction
- Trading is a business and successful businesses. have plans
Trading Plan Tips
Before looking at the tips analyse your trading goals. Decide whether you are
- A Day Trader Or A Swing Trader, or How Often Are You Going To Trade?
- What Amount of Risk Are You Going To Tolerate
- How much Gains or Profits Are You Aiming For?
- System Decay
- External Factors- How Sensitive Is Your Trading Plan?
Golden Rules in Forex Trading
- Do Not be a Gambler while Trading Forex
- Do not get carried by Emotions
- Do not be Greedy to earn profit
- Do not get depressed when you loose
- Remember to be in the market for ever
- Do not hear Gossip
- Only use 1% of Margin money for Trading
- Do not Trade on Calendar Events if you not know the trend
The best forex strategy I follow is 20 pips per session. I like small time frames 5 minutes and 15 minutes. I wait like a hungry lion to catch the prey.. But look for 1 hour chart to get an overall perspective on trend MACD rules on the 15 min chart. Even if MACD is, say, trending up on the 1 hr chart, if it is trending down on the 15 min chart, thats what you take your cue from . Only use MACD for divergence, not for buy or sell signals. It is a lagging indicator, and as such is useless as a trigger. Always protect your money by using 20-30 pip stops. Mental stops are okay, but not if you are dead serious about using a disciplined approach to managing your money. You will lose three out of ten trades. The three losses should be kept to 20-30 pips. Your wins will by far surpass your small losses. Look for 4 hour chart for the following information. If 5 period moving average cross 13 period and both cross 50 period for sure the the trend is set. Select only 1 or 2 currency pairs and play with them. This technique gives grip on the currency pair and its behavior. Be disciplined on stop losses and profits. Do not be either depressed or greedy. Do not play on calendar events if you are not sure. High volatility and thus risk.