Forex plan.

A well-written plan is half the battle. The key is to accurately define all strategic objectives at the initial planning stage and then outline the sequence for achieving them.

Many novice traders mistakenly think that a Forex trading plan only concerns the actual trading process, namely trend analysis and execution of trades in the trading terminal.

A Forex plan includes setting goals, determining how to achieve them, and, of course, the practical part of trading.

Target.

In our case, the goal determines the entire subsequent strategy. If you want to make Forex your primary source of income, your planning approach should be completely different.

For example, to simply earn a little extra money, a couple thousand dollars and open one trade every few days is quite sufficient.

However, if you want to live on your earnings in the exchange, your income requirements increase dramatically, and if you can't use a large starting capital for Forex , you'll have to resort to riskier trading strategies.

So, at this stage, the most important thing is to define your goals, but do so within your realistic capabilities. Unrealistic goals are almost always doomed to failure.
For example, a goal like earning $1,000 a month with only $100 will likely result in you losing the first $100.

Therefore, earning $10 from $100 is a more realistic goal.

Choosing a strategy.

After setting a goal, we move on to choosing a trading strategy to achieve it. The more ambitious your goal, the riskier the strategy you'll need to choose. You can learn more about various trading strategies in the " Forex Strategies "

Planning the trading process.

Typically, this stage consists of the following elements:

1. Analyzing the current market situation.
2. Drawing conclusions about the most favorable entry points and stop order sizes.
3. Determining the lot size and the amount you are currently willing to risk. The more confident you are in your forecast, the higher the trade volume to the trader's deposit ratio can be.
4. Receiving entry signals and opening the trade itself.
5. Monitoring the open order, modifying it (moving the stop loss or take profit) if the situation changes or to lock in profits.
6. Receiving signals to close the trade and exit the market.

That's essentially the entire Forex trading plan. Don't overcomplicate the trading process. The main thing is to clearly define the sequence of actions and avoid making hasty decisions based on emotions.