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, it is built on a certain foundation, and this will be the conclusions obtained after studying the market situation.
The analysis begins with determining the state in which the market is located, whether there is a pronounced trend movement on it or whether the price practically does not change and the market is frozen in a flat state.
Then you should find out the dynamics of the market, find out how quickly the price moves and the reasons for its movement.
At the next stage, we will consider the trend itself and identify the direction of its movement on medium and short time frames; 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 you to choose the most successful point when opening a transaction and will make it possible to get as much profit as possible.
You can find out 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 get; this indicator will depend on the value of the take profit order being placed.
The stop loss size is calculated in the same way; it is set at the lower price limit, beyond which a price reversal is possible.
Also, depending on the predictability of the market, you should set the transaction volume; there are times when it is worth significantly limiting the size of opened orders.
Search for market entry points
Having completed determining the parameters of the future position, we move on to opening it. 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.
In the first case, we focus on the average value of rollbacks during the day and open an order as soon as the price makes a reversal, pushing off from the support or resistance level.
In the second option, we open a position after a price reversal or a breakout of one of the levels, while false breakouts should be avoided.
There are simply a huge number of successful 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
At the final stage of our trading plan, we must maintain an open position and monitor the market, if the forecast really turned out to be correct, then it is advisable to increase profits by adding new orders.
We close transactions using 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 prevent premature closure of the order, wait until the price has actually exhausted its potential and only then close the order.
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