A Forex trading plan is something every Forex trader must have. It is like your code for those of you that are familiar with Dexter Morgan. A Forex trader without a code is as good as dead. It’s all about developing a profitable Forex trading plan.
Simplicity is the key for me. Some Forex traders will tell you that they trade on pure price action and nothing else. There maybe some truth in this but not all of us are Neo “The One”. So we cannot see the code, we are only as good as Morpheus, and the majority of us are on the edge like Cypher. I say a little help does not hurt.
A combine price action and LEADING indicators are your great guides.
Before I delve into the nitty gritty, a few ground rules for your Forex trading plan.
1. Only risk 1-5% of your account on any Forex trade.
2. Never press the ‘button’ more than once a day on one instrument (There are 12+, so you can push the button 12 times I guess…).
3. In Forex Trading always know what you want as profit and ask yourself, Is the risk worth the reward?
4. Only trade the trends and never a range.
My personal Forex trading plan is simple.
All the above ground rules first and foremost, I use volume and support and resistance now incorporating Elliott wave and Fibonacci. In my video tutorials you will see this in use
This is one example of a Forex trading plan. You won’t always win but by sticking to your own game plan you will have a surely better win/loss ratio. It’s about how to trade Forex successfully.