To make a good trading plan

To make a good trading plan we need to know our strength and weakness. A trading plan should be based on strength. Most people ignore their weakness and try to trade in all kind of situation. It's not good.

Good trading plan will ensure you a good return when it comes to strategy and profit, but you are not free from risk as sometimes planning can fail due to the volatility of the forex market.

to make a good trading plan one should be full of confidence but also aware of the weakness to ensure and avoid mistakes.

The first thing to note is that writing a plan for Forex is based on market analysis for the allotted time interval using fundamental and technical analysis.

But what constitute a good trading plan?

cardigan posted:
But what constitute a good trading plan?

A trading plan must include how a trader will find and execute trades. It must also be clear in what conditions they will buy and sell securities, the position size they will take, and other rules like when to trade and when not to. As simple as that!

leahmclaughlin posted:

cardigan posted:
But what constitute a good trading plan?

A trading plan must include how a trader will find and execute trades. It must also be clear in what conditions they will buy and sell securities, the position size they will take, and other rules like when to trade and when not to. As simple as that!

Along with all this, risk management and money management should also be a part of a trader’s plan.

Demo account is the best place to make a trading plan. Plan is important to make consistent profit.

sailingconsist posted:

leahmclaughlin posted:

cardigan posted:
But what constitute a good trading plan?

A trading plan must include how a trader will find and execute trades. It must also be clear in what conditions they will buy and sell securities, the position size they will take, and other rules like when to trade and when not to. As simple as that!

Along with all this, risk management and money management should also be a part of a trader’s plan.

100% true! From skill assessment and mental preparation to setting goals and trade preparation, there are so many things that you will have to consider when building a winning trading plan.

The trading plan should consist of proper risk and money management strategies in the trading market.

most of the time i losses during news , may be its my lack of fundamental knowledge, actually without real powerful fundamental knowledge there is no way to bring profit during news at all.

I have seen many expert consider scalping as a risky strategy. I am not willing to consider scalping as a risk for the newcomers, if the newcomers want to get maximal result by scalping with certainly they have to make sure first of all the currency pair which has lowest trading spreads, otherwise it can be a great risky

I do not understand what is meant when you say weakness. Are these errors in the trading system or lack of any knowledge? We need to figure out what these weaknesses can be connected with, because it is impossible to ignore them.
You can build your trading using only your strengths, but be prepared for the market to exploit all your weaknesses tomorrow.

Of course, lessons should be learned from mistakes to strengthen weaknesses. If I make the same mistake again and again, I will not get a good profit by trading.

Formulating the proper strategy can leads to good trading plan, so it is always useful to experiment and get better in your trading journey. Another useful tips is to take into risk and money management.

LukeRachel posted:
Of course, lessons should be learned from mistakes to strengthen weaknesses. If I make the same mistake again and again, I will not get a good profit by trading.

Unfortunately, not everyone who lost understands this and does not even try to look for their mistakes, thinking that the market is to blame for everything bad in the world

MarcellusLux posted:

LukeRachel posted:
Of course, lessons should be learned from mistakes to strengthen weaknesses. If I make the same mistake again and again, I will not get a good profit by trading.

Unfortunately, not everyone who lost understands this and does not even try to look for their mistakes, thinking that the market is to blame for everything bad in the world

The trader needs a plan to be successful. If there is a lack of a plan, it is very difficult to succeed.

Why bother wasting time on a plan especially if you are a newbie. That time is better spent learning and demo a trading. A newbie is probably going to write a bad plan anyway

@bridgekarate Yes newbie should spend time on developing knowledge and trading skills. Planning is a later part of trading.