Trading Plan PDF
Trading Plan PDF
You can learn a lot about the currency market. You can have a great system for trading but
without a good trading plan and the discipline to stick to it, you will NEVER be profitable.
Your trading plan will be a constant reminder of how you will make money trading the currency
market. A plan is not required, and if you make a living by trading and do not have a plan you will
be a market genius.
Let us give you some good reasons why you should have a trading plan.
You need to develop consistency in your trading. You should have a routine so you can measure
your success as a trader. You may have a sound trading system and always break the rules. If
this is the case you will never know how good your system is and how good you are as a trader.
Read your plan every day, follow it and you will stay on target with your goals.
2. Successful trading is not just a hobby it is a business and a successful business will have a
plan.
I have never known of a successful business that did not start out with a plan. By sticking to the
plan they continued to be successful. If they stop following there plan then they will become
weak in there industry and fall by the wayside. As your trading business progresses you may
alter your trading plan. But you still have a plan.
The difference between the winning traders and the losing traders is a plan. If you have a good
plan (developed over time) and you stick to it, you can become successful!
You may have a simple plan or a complex plan but to be successful you need to FOLLOW YOUR
PLAN.
Trading System
The trading system is the foundation of your trading plan. You should test it for at least one month
by your Pre Launch Trading and Demo trading.
Trading Routine
A trading routine is an important part of your trading plan. It will direct you:
a. When you will analyze the market and plan your trades
b. When you will watch the market to place trades
c. When you will check the market during the day
Example: I will analyze the market each evening when I get home from work and just before I go
to bed. I will watch the market for an hour in the morning before I go to work. I will check the
market when each new 4 hour bar is formed when I am awake.
Being calm and relaxed is an important part of trading. By following your routine you can be in a
better state of mind than if you run in and look at the market to try and get a few pips then check
the price randomly through out the day. The routine will help keep your emotions in check.
Example:
a. I will look for signals and not guess which way the market is going.
b. I will only trade in the direction of the trend.
c. When I lose on a trade I will see what I can learn and move onto the next trade.
d. I will not try and get even with the market.
e. I will not be hard on myself for losing on a trade.
f. I will use each trade as a learning experience.
Take some time and think about what you want to accomplish as a trader.
Make sure you log the details of each trade and record the reasons for the trade in your Trade
Tracker sheet. Later down the road you can look back and evaluate your trades and see how you
are progressing. I’ve looked back at my trade journal and have seen just how much I’ve grown as
a trader. My first entries were very basic and as I’ve progressed, my trades make more sense to
me now. I’ve gained a lot of confidence throughout my career and by looking back at my trades,
I’ve really been able to evaluate myself and see if I am getting closer to my goals. This tool will
help you tremendously in the long run, so take a few minutes each day and log your trades. You’ll
be happy you did!
Summary
Your trading Plan will be just like a flight plan it will keep you on target toward your goals
Review your trading plan every time you trade and stick to the plan.
You may have all the knowledge out there and be able to talk the talk but if you do not have a
trading plan on how to use your knowledge then you will never be successful.
Keep in mind when you start to trade with real money you are starting a business and you will
need a plan to be successful in that business. If you do not want to start a business then stick to
Demo trading and treat it as a game.
You should make up your own trading plan from the suggested outline above.
You will be amazed that by following the trading plan you will stay in trades longer and not get in
to as many poor trades.
When an alert sounds I check the market and place my trades based on entry signals.
I never anticipate what the market will do I trade only with signals.