Forex Trading - The Best Laid Plan

No business ever succeeds without a plan. The same goes true for those who want to make huge profits from trading in the forex market. Without a trading plan, a forex trader is doomed to fail in building his forex trading portfolio. He will only succeed in gambling away his trading capital with nothing left for him to get back into the market. A wise forex trader would have his own best-laid plan that he commits to stick to. Drawing up a forex trading plan is not at all that difficult once you know what your trading style is and how tolerant of risks you are.

The heart of your forex trading plan is your trading system. You should already know what kind of system works for you at this point by your own back-testing and forex demo account trading. This will govern your trading decisions considering inputs such as timeframes, criteria for entries and exits, and your currency pairs among others. Make sure you stick to these parameters. Wavering on your system rules will just cause you to lose out on opportunities.

You should also be able to keep tabs on your forex trading weaknesses. If you are finding it hard to stick to your rules, you should be able to acknowledge this weakness and try to remedy it before you start experiencing losses. Affirmations on your goals and your trading mindset should also be included in your forex trading plan. When you put your plan to action, you should be able to leave your emotions out of it and give it a chance to work its magic. In order for you to evaluate your trading actions, you should also journal your trading performance vis-a-vis your trading plan.