Tag Archives: trading plan

Forex Trading

Traders Log

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Trading in the Currency markets involves a great deal of patience, perseverence and absolute dedication to make it long-term. There’s no quick way to achieving success in almost any discipline, trading is no different. Being consistent entails fully following the principles of one’s trading plan. You can do this by devising a trade log sheet.

What should the Trader Log Include?

A traders log should be your DNA defined template, presents you an opportunity to document your trading results. An individual’s log sheet should not only involve the stats which you can acquire access to, in your broker statement, such a showing the entry/closing time, price of entry and P/L. It must also include the kind of of technique you entered (if you have more than 1), the whole accrued pip profit that you made/loss. Once you have entered more than 1 position, you can set up the pip per trade and total among all your investments. Then the ultimate part that is definitely possibly one of the most important, the assessment.

Evaluation

This is one of the essential areas that is paramount to the success of your trading strategy. A large percentage of traders do not document the trades they have taken, regardless of the end result. Your evaluation should detail:

Whether the trade followed your plan. If it did not then why?

Your subconscious views throughout the trade. Did you really feel nervous, anxious, uneasy?

Your feelings and views after the trade has been closed out.

Write down the key areas, if any to improve. Then find ways to enhance your system, either by going on courses, reading books or listening to audios.

Many traders may look at applying a traders log sheet in your plan as laborious or

monotonous. Unfortunately traders which have this view, over a length of time, due to most very likely losing money or having your account wiped out, will certainly soon realise the significance. There’s no fast overnight, pot luck way to extreme success in the markets, particularly the Forex market. There will be severe tests to show your consistency and willingness to include new ways to enhance what you are doing.

After this you should analyze and spend some time at the end of each week, month, quarter and year to review your trades.

To your success.

Online Trade Training is a article to help individuals understand more about rarely discussed topics. Please visit Smart Forex. This article, Traders Log is available for free reprint.

Stock Trading

Trading Plans: The Key To Success

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Every successful business needs a business plan. In the same way, every trader to be successful must have trading plans. Having a trading plan removes the emotions from decisions made during trading. It defines what your responses are going to be at any point during a trade.

A plan, no matter if it is for trading or a typical business, sets into place all of the things the owner or whoever will be implementing it will be needing to make sure his operations are running without a glitch. Take for example the fast food giant, McDonald’s. Every single day the company is cooking and selling hamburgers and other food items all around the globe. How are they able to do it with such consistency and efficiency? It is because of their plans.

You would never consider starting a business such as a restaurant or a gardening business and spending $50,000 to $100,000 to establish it, without first completing a thorough business plan. Yet somehow, people see trading as being different. It is not. You are going to invest a significant amount into your trading. Treat it with the same respect you would any other business, and draw up detailed trading plans.

A well thought out, well documented trading plan is the key to success. A good guide as to whether this is a solid plan is to write it out and then give it to someone else to read. If they are able to understand it and to go through it with a minimum number of questions, you can rest assured that you have completed a competent trading plan.

Why is it important that you write your own trading plan? Simple, because it is your sole responsibility on what is stated in that plan. Aside from that, it is so that you will understand that in case you make mistakes in your trading, you will know what exactly to change in your plan.

A proper trading plan covers three main areas. First, it must have tested entry rules. This is a precise set of rules that a tradable instrument must pass through before you enter any trade. The rules must be simple and easy to follow.

Do you have your exit rules clearly defined in your plan? If you have entry rules it is therefore also important that you know when to exit a trade. This is because it does not make sense that you know when to enter a trade and yet you do not know what are the criteria you should be looking out for to know that you have achieved all that you can from that trade, whether it is a winning or losing situation. If it is a losing situation then at least the goal is to minimize your losses. Do not let it bleed as they always say.

And last but not the least, the need for a very strict money management is of high necessity especially if you know your assets for your trading are very limited. Again, this is to help you minimize your losses.

Any trading plans or best trading system encompassing these three basic components will allow you to achieve success in your chosen market.

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