You Should Always Have A Trading Plan
Let’s talk about having a trading plan. As you may know, when trading forex you can lose money easily. It is written on every presentable website talking about this field and if it’s not, do not continue reading as it wouldn’t be serious.
Here are several reasons why people lose money and tips on how to avoid the loss of money through having a proper trading plan.
Experience – In the trading world, experience just as in any other field is important. A lawyer cannot become a doctor in a day and vice versa. Hence, it would be wise to find out all information from other fellow traders that are willing to share their own experience. Find them on forums, through friends if possible or any other means of social communication. One of the best methods is to open a demo account with one of theregulated forex brokers. Gaining experience should be part of your overall strategy, and it will assist you in the technical process of building the right forex trading plan.
Discipline – Most of beginner traders will not have the discipline as a forex trader that has years of experience. Discipline means patience and the psychology to be able to sustain long waits reaching your predicted forex currency price that was targeted in the trading strategy. No matter what, your forex trading plan should include a stop loss and a take profit targets, and well predefined money management rules.
High Expectations – forex trading is not the place where you will make $10,000 fast. Your forex trading plan should include in its header the fact that this market is though. You will have such a better time putting that as a crucial part of your forex trade plan.
Greed – Ay ay ay, the human nature of things: “I’ll just wait a little bit more for those extra 5 pips”. Wrong plan within the forex trading market. It will always increase your chances of losing money instead and that extra 5% profit on your account can turn into -5% or even worse -100% at times. Bad trading plan, try to avoid this on your trading.
Using high leverage – Even experienced traders have this problem of risking too much on one or several trades that leads to a margin call or a stop out. Part of your forex trading plan is to not burn all your money on this one trade that can either give you a 400% profit return or a total loss of your funds. If you wish to do this, go have fun on the roulette in some nice Casino, but do not even bother to trade forex.
Forex trading is not so though as it sounds. However, it can be too risky for those who are trading without using proper trading plans. So start planning your trading today, be equipped with some patience and discipline, and see the results tomorrow!
Subject: The Basis For Your Success 
Mon Feb 15, 2016 1:05 pm
