Forex Trading Plan : Trading will be easier if you have a trading plan than if you don’t. Consider the times you’ve used a GPS or Google Maps on your smartphone.
You go where you wish to by entering. After determining your location, it proceeds to show you how to get where you’re going.
To be sure you’re still headed in the proper direction, you can frequently check your GPS.
It recognizes when you’ve taken a bad turn and adjusts accordingly, pointing you back in the right way. Your trading GPS is a trading plan. It will assist you reach your goal of consistent success by illuminating where you are as a trader right now.
Traveling without a GPS is not a wise decision. You wouldn’t know how to get there, and it’s possible that you’d get lost and end up driving around like a chicken with its head cut off.
Trading without a plan would be like driving without a GPS: not a good idea.
While you’re attempting to reach this fabled place known as “Consistent Profits,” you have no way of knowing if you’re on the correct track, therefore you’ll probably wind up blowing your account because you don’t know where you’re going.
You can determine if you’re moving in the right way by using a trading plan.
You’ll have a system in place to evaluate your trading efficiency. And you can continuously keep an eye on this, just like a GPS.
You can trade as a result with less stress and emotion.
Do NOT be a COWBOY Forex Trader
This would be extremely challenging without a trading strategy. Instead, you’d be a “cowboy trader” who traded haphazardly, on instinct, educated estimates, or signals from strangers.
That is gambling, not trading.
Every time you trade, you’ll likely become a stressed-out, emotional disaster, sobbing yourself to sleep as your wildly fluctuating account balance wears on your mind. (Okay rather extreme, but we think you get the picture).
Your trading plan outlines how you’ll become consistently profitable and lets you know if you’re on the right road, much like how you use a GPS to choose the route to travel and to assess the progress that has been made.
Most importantly, if you are terrible at trading (and you will be in the beginning), you will know that there are only two possible causes: either your trading plan has a flaw or you are not following it.
It’s tough to distinguish what you’re doing correctly from incorrect when trading without a plan.
You won’t ever know how to quit failing because you have no method of assessing your performance.
We can’t emphasize this enough..
“If you don’t plan, you’ve already made plans to fail,” the saying goes
Obviously, having a trading plan doesn’t ensure success, but sticking to a decent plan will help you stay in the forex market longer than traders without one.
Your initial objective as a novice trader should be SURVIVAL since it is preferable to failure.
Keep in mind that 90% of beginning traders fail. You want to be a part of the exclusive “10%” who succeed.
Most likely, you’re saying, “Ba humbug! Trading strategy, trading strategy. I can be part of that 10% without a stinkin’ trading plan!”
It may be tempting to trade impulsively, but you’ll find it very difficult to consistently make money as a trader if you don’t create well-defined trading plans and have the self-control to stick to them.
Avoid taking any chances. Make a trading plan.