What is a Trading Plan?
The old saying “fail to plan and you plan to fail” is just as important in business as it is in forex trading. All the top traders, without exception, have a trading plan. A trading plan is a document that you develop which defines what you should do, how you should do it, why and when. The plan covers your goals, what type of trader you are, your trading expectations, risk management rule and trading systems. In short, this document gives you your trading rules and tells you when you should make a trade.
The idea of the trading plan is that it will help to minimize trading errors and therefore limit trading losses. It is important that you make your own plan, rather than following someone else’s. The simple reason being that each trader’s style is individual, we all have different levels of risk tolerance, market views and experience and these are all relevant to the trading plan.
Once you have your plan you are ready to go. Use a reputable regulated broker, such as ireviewforexbrokers one among the best Australian ECN broker. And don’t forget to plan your trade and trade your plan.