A Forex trading plan summary is a list of rules you make to follow before,during and after trading.
Your Plan includes a methodology, system and a strategy. With a plan, you can answer questions like how, when, where, who and what!
The summary of a trading plan
Your trading plan should have;
- Your strategy name
- Entry and exit signals
- Stop loss and Take profit
- Currency pairs you intend to trade
- what makes a trade to fail
- Time frame to trade on
- The list of indicators you use and how to use them
- How much are you willing to risk per trade?
- Your trading goal
- How much time can you commit to your trading?
- Your daily trading routine
- Your trading journal and record keeping
- Last but not list, trading rules
We covered Guidelines to develop your own good trading plan in previous lessons
Trade what you plan
Trading with a plan is to trade emotion-free while trading without a plan is trading emotions.
A trading plan is a guideline for your trading business. So it tells you what to do, how to do it when and where to do it from.
It involves, the markets you want to trade, time frame, trading system/style, entry/exit points, risk management tools, and other rules to be followed.
Also, it describes your personality as a trader.
To be consistent in your trading, you need to have self discipline, patience and persistent in your trading life style. All this helps you develop self confidence and improves your market skills.
Having a written trading plan is a reminder of what is best for your trading account and one way to achieving your goal.
With a trading plan you can measure your trading performance, find out your weaknesses and solutions for your failures.
It feels safe when you follow your rules. And having a forex trading plan summary using the above guidelines should be enough.
Don’t ever forget to put on a life jacket if you love sailing. How much would you trust your life with the sea? That life jacket is one thing that kept Rose Dewitt alive after the titanic tragedy.
Follow your trading plan and feel safe.
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