A real trading plan that will help you learn how to make money
Like any business, trading in the Forex market requires careful planning, especially when it comes to finding entry points into the market.
A trader must clearly understand the entire work scheme and always follow it; this approach will significantly increase trading efficiency and reduce the risk of making mistakes.
The trading plan can be divided into three main stages - the first involves making a forecast of the trend movement, the second involves directly searching for points in the market, the third is the final stage at which a decision is made to close the transaction.
It is precisely strict adherence to the drawn up plan and compliance with all its tactical aspects that will allow you not to lose your money, and then receive the long-awaited profit.
Chaotic trading always leads to the loss of the deposit or the formation of large drawdowns.
The first point of the trading plan will be market analysis
This step is necessary so that our trading plan has some basis, that is, is built on a foundation, which will be the conclusions obtained after studying the market situation.
The analysis begins with determining the state of the market, whether there is a clearly defined trend movement or whether the price is practically unchanged and the market is frozen in a flat state.
Then you need to find out the market dynamics, find out how quickly the price is moving and the reasons for its movement.
In the next step, we will examine the trend itself and identify its direction of movement on medium and short timeframes. The obtained result will serve as the basis for choosing the direction of the transaction.
We should not forget about the magnitude of the correction; knowledge of this indicator will allow us to choose the most favorable point when opening a transaction and will provide the opportunity to obtain as much profit as possible.
You can learn about the correction on the page - http://time-forex.com/terminy/korreksyy-forex
Next, we determine the duration of the transaction and plan the amount of profit in points that we can obtain; the value of the take-profit order will depend on this indicator.
The stop-loss size is calculated in a similar way; it is set at the lower price limit, beyond which a price reversal is possible.
Also, depending on the predictability of the market, the transaction volume should be set; there are times when it is necessary to significantly limit the size of opened orders.
Finding market entry points
Having completed defining the parameters of the future position, we move on to its opening. At this stage of our trading plan, it is important to enter the market at the most opportune moment, namely, immediately after the end of a pullback against the prevailing trend or at the beginning of a new price movement after a reversal has occurred.
In the first case, we focus on the average value of pullbacks during the day and open an order as soon as the price has made a reversal, bouncing off the support or resistance level.
In the second option, we open a position after the price has reversed or one of the levels has been broken, while avoiding false breakouts.
There are simply a huge number of good moments when it is worth opening a position, the most popular ones are described here - http://time-forex.com/sovet/tochki-vkhoda-v-rynok
Maintaining a position and closing orders
In the final stage of our trading plan, we must maintain an open position and monitor the market. If the forecast turns out to be correct, it is advisable to increase the profit by adding new orders.
We close trades based on take profit or on our own initiative if a negative trend is detected.
The main thing when executing this point of the trading plan is to not allow the order to be closed prematurely, wait until the price has truly exhausted its potential and only then close the order.
Professional training in stock trading - https://time-forex.com/info/besplatnoe-obuchenie-trejdingu
