Forex Trading Plan

There are many Forex traders that set up personal goals, or Forex Trading Plan, for themselves. That’s great as long as the goals are something like, “I won’t trip over the rug anymore.” But if the goal has anything to do with how much money you want to make on any given day trading Forex, then you need to rethink your mode of thinking. It’s a recipe for disaster. You should never have in mind that you are going to make a certain amount of pips per day, or a certain amount of money per day trading Forex. There are simply too many things that can go wrong and turn your odds for successful trading against you at an alarming rate.

The problem begins when you may fall short of your monetary or your pip goal on any given day. Now what do you do? You have to make up for the loss, plus reach your stated goal on the following day. Who needs that kind of pressure?! And an equally psychologically crippling situation is when you make more money than what your designated plan calls for on a given day. Should you take the next day off? Or should you just get lazy? In either case it becomes a no-win situation. There are enough pressures in the Forex market itself without adding garbage thinking into the fray. Use a Forex trading plan.

Stick to your Forex trading plan. If, at the end of the day, you find that you have sustained losses; well, that’s all part of the game. Your trading plan should take into account a profit/loss ratio and you know there are going to be days like that. But in the meantime, on the next trading day you’ll be able to start out fresh and not have to worry what did or didn’t happen the previous day. If your Forex trading plan is sound (which you know it is, because you did an incredible amount of research and practiced on a demo account before actually implementing it…right?), then in the long run you are going to realize profits. And that’s what you should be in the Forex market for; the long run. Forex Trading Plan

If another Forex trader should ask you what your daily goal is in trading Forex, your answer should simply and respectfully be, “…to be able to trade tomorrow.” Never put a number on that goal because without fail, that number will turn around and bite you. There are some great opportunities in trading Forex right now and there’s no need to limit yourself. Stick to your plan. That’s your goal.

Forex Trading Plan