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LESSON: Making a Plan, Setting Goals and Keeping a Journal

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[op_liveeditor_element data-style=””][text_block style=”style_1.png” align=”left” font_size=”16″ font_font=”Montserrat” font_color=”%237e7e7e”]There are two things Professional traders and consistently profitable Forex Traders have in common:

•  They have a plan and rule set
• They treat Forex as a business

Many amateur traders fail on both these points.

The state of trading we strive to achieve is to be a consistent profitable trader, repeating the same method over and over again.

To become a consistent trader we must first have a rule set to follow. Without a rule set or a trading plan we will react different in many situations and the edge of consistency will never be created.

The Forex market is very unique. It has no rules other than the rules imposed by your broker. It is this same freedom or lack of rules that will also be the downfall of the trader.

Because there are no rules the trader must set out in a very clear manner the plan which they will follow. This plan will constantly change due to refinement but without a plan the trader is doomed.

This plan must include important information such as:

• What the traders edge looks like
• How the trade enters each price action set up
• How the trader manages trades and how do the protect their capital once in a winning position
• How the trader will take profit as the market makes it available to them
• How to place and play stops
• How much the trader will risk on each trade

There is much more information the trader should include in their plan, the above is just some basic points.

The plan must cover everything the trader needs to know for absolutely any situation. This plan will be revised from time to time if better ways of doing things have been worked out.

Treating your Forex trading like a business is a very important factor towards your overall success. Forex is a business and it is up to you change your mindset into treating it as such. When you are trading a ‘live’ account real money is on the line.

The whole reason we are trading is to make money and consistently turn a profit. The more you treat Forex like a business and the more serious you treat your business, the more success you will achieve.

NOTE:
You can download your trading plan to start creating your own plan and rules so that you have strict rules and plan of your own to follow at the link below:

Download Your Student Trading Plan Here[/text_block][/op_liveeditor_element]