Success or failure of a forex trader depends on how he is trading and what strategy he applied. In addition, it should also be disciplined and able to control your emotions when trading. Trading plan is also an important element of the success secrets of forex traders. Before the start of trading activity, traders should make a plan or plans.
Why important trading plan?
Forex Trading as well as business in general. Yup, these businesses also need a trading plan so that the performers can be more directed and focused. With the plan, you have a guide for trading.
In addition, the trading plan also minimizes the possibility of bad in forex trading. Because, as long as you hold fast to the initial plan and remain on realistic expectations and not greedy, you can minimize the risk. The existence of a trading plan forex traders also make more confident because it takes such a strategy, analysis, etc. already recorded and clearly planned.
Nothing is included in the trading plan?
Well, then let's talk about what are the things that should be included in the trading plan. Of course, there are some points that you should look and enter. Determine a realistic target. How much would you trade-right? At which point profit target and stop loss you? In the trading plan, you also need to incorporate strategies that you will use in later trading.
Define the steps of fundamental and technical analysis that will be applied. Determine also the time when the open and close. In addition, you may need to consider in the plan if you will be day traders, scalpers, swing trader, or other types of traders.