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Wednesday, 13 December 2017

It's All About Learning How To Stick To One Strategy

It's All About Learning How To Stick To One Strategy, Having A Trading Plan Before Trade Forex, Forex Blog, Forex Friend Loan, One Strategy

It's All About Learning How To Stick To One Strategy


Having A Trading Plan Before Trade Forex


My goal with this forex blog from forex friend loan about it's all about learning how to stick to one forex trading strategy to share those keys that will help you stick to one trading strategy. I'd remind you not to take them blindly. They've helped me to develop and trading the one trading strategy for close to 2 years now. For sure, I tweaked a few things here and there but not too much, and I don't see why I'd change things.

Are you one of that trader that make plans with every intention of carrying through with them and then at the last minute you are unable to stick to them? This can be very frustrating for you as well as for the traders around you.

If you would like to learn how to stick to your trading strategy and be a more reliable and productive person you can! It's never too late to learn how to follow through and you might find that one of the most helpful tools is the use of goal affirmations.

A trading strategy can make the difference. Just as you wouldn't tempt to travel across the country without some sort of map, Would you? You shouldn't contemplate entering the forex market without a trading strategy.

A well-designed trading strategy provides you with a roadmap to achieve your financial goals as a forex trader. It also enables you to measure your growth as a trader in the long term. The vast majority of novice and intermediate traders and investors will buy and sell without a trading plan.

The lack of a trading plan is one of the biggest differences between a novice, unsuccessful or struggling trader or an investor and the profitable traders and investors who have incredible, consistent success in the forex market.

Creating a trading plan does not have to be a difficult task. Often the simplest trading strategy is the most effective. The simpler your trading strategy the more straightforward your share trading plan will be when you record it on paper.

Most of us either have our own computer or we at least have access to one. So there is no excuse for not being able to record your trading plan on paper. If you are really keen you could even create a trading plan pdf.

So what are some of the main benefits of trading with a trading plan? Well, to start with a trading plan that is designed correctly will be aligned with your trading experience, personality, mindset, risk tolerance, and financial goals.

In addition, a trading plan can give you better control of your trading with decisions based on your trading strategy and not on emotion. Your plan will tell you exactly what, when, and how to execute your trading decisions. It will also tell you when you should stand aside from the market when conditions do not suit your strategic edge.

Designed right your plan will give you the confidence to stick with your plan even during the lean times, particularly when you strike a series of losing trades.

Another important feature of your trading plan will be your ability to plot your development as a trader or investor. Properly thought out, your plan should give you a suitable benchmark against which you can track and measure your progress, both from a financial and personal growth perspective.

Remember, if you want to serious about your trading, you need to be able to compete with the market professionals. If you think you can get away with competing in the financial markets without a robust trading plan - your fooling yourself

If you are not too sure where to start or think that it all sounds too difficult, do not despair. The best way to construct your complete trading plan is to start with a trading plan template. That way you are assured of covering all the critical elements of a robust trading plan.

You can find them in many trading books. Forex trading plan templates are also available on many websites. But be warned. As with many things in life, "you get what you paid for". For that reason be wary of cheap or free trading plan templates. They are more often than not incomplete, flawed or part of some trading company's strategy to get you onto their mailing lists.

Spending a few dollars to purchase a trading plan template or handbook is more than likely going to be money well spent. A decision that will repay itself many times over.

Having a trading Plan Before Trading forex

It is very important to have a trading plan before trading. This way you know what to do in different circumstances. You should not be left trying to guess what you want to do with your trading positions but you should have a defined plan and stick with it.

Your trading plan should be determined before you enter a forex trade. It is easier to make rational decisions before you enter a trade than after you enter it. So, what should you include in your forex trading strategy?


5 Essential Tips On How To Stick To One Forex Trading strategy


1. When are you going to enter the trade? You need to decide whether you going to enter based off of some technical indicator like a breakout or a bounce off of support? Do you look at any fundamentals? Deciding when to enter is a very important piece of the puzzle. You should have some consistency with this. Developing an entry that is consistent can help you in the long run.

2. How are you going to manage the position once you are in it? This is just as important as knowing when you are going to enter a position. You might decide you want to follow the position up with stops. If so how tight are you going to keep the stops? Do you manually adjust it or do you set a trailing stop? 

Maybe you don’t want to follow the trade up with a stop But however, your strategy for managing it is important to figure that out beforehand.

3. How do you plan on exiting the trade? This is probably the most important part of your trading strategy. You can do everything else right but if you mess this up it will not matter. Deciding whether to use a target or some other approach is very important.

4. Ignore the unnecessary info. I believe that you need to limit the information that enters your mind. This implies that you don’t need to try and be best at everything – choose something that interests you. However, I am not calling for you to close yourself from the information completely. It is very important to choose 3 – 4 topics that you like and become great at them.

One more point here: usually, newcomers in Forex try and read about everything at once, while searching for something like “how to trade Forex successfully”. I believe that the key here is to be more specific, as it will bring you real results.

Furthermore, you will need to really be patient and spend a lot of time mastering your trading execution. I recommend making it a habit to learn something new every day about the topic you are trying to master.

5. Understand how your Forex trading strategy works. Very often, we tend to switch to a new strategy when things are not really going as we planned it. We notice that our trading strategy is not really bringing the results we were expecting. However, is it really things going bad or is this a usual drawdown for our strategy?

Most of the time, it is the second option. I suggest testing the current strategy at a different point in time. It might show you the very similar drawdown. Do you think you are able to stick to one Forex trading strategy? 

Having a trading strategy is the first step for successful trading. It will not guarantee a profit but it is a good way to start.

It's All About Learning How To Stick To One Strategy