Saturday, September 23, 2017

Forex Trading Plan Tips

December 19, 2010 by  
Filed under Forex FAQ & Latest Post


In this post, I will answer a question regarding how to setup a trading plan. This is a very important question as it is something that I strongly believe every trader should have.

Below is the question

How do you prepare a trading plan, and what is in your trading plan?

How often should you enter a trade daily?

Which is the best time to trade?

In a trading plan, you need to specify the indicators that you are going to use and what signal should you see before you trigger an entry.

For Example:
If you are trading breakout, your trading plan will specify that you should see a Bolling Band squeeze and you need to see certain candlestick pattern formation.

You also need to know what time frame you are going to use for your trading.

Besides your entry signal, you also need to specify where exactly you should place your stop loss and where you are going to exit your position.

For me, I will also specify when I should shift my stop loss to lower my risk as this is part of a trade management.

As for your question about the frequency of my trading, I place about 2 to 3 trades every week as I strictly stick to my trading plan. As long as there is no setup that is exactly matching my plan, I will give it a miss.

As for the best time frame to trade, I personally feel that the 15 minutes chart is the best.

What do you think is your best trading time frame?

Comments

3 Responses to “Forex Trading Plan Tips”
  1. Paweł says:

    A good plan of trading should cover a every time frame .
    For example from 4H to 30min . We should have general view for market and next focus in one timeframe where we always take position.

  2. Dr Julius Ssemakula says:

    Hullo Kelvin
    You have no idea how important your posts are. Even when i think that i have read it before or even when i think that i know the topic i always find something new for example i didn’t know that in your trade plan you have a time when you can shift your stop loss to minimize on the risk as that is part of trade management.

    About the time frame, i feel the 15 minute time frame is not good enough. as in it moves so fast and doesn’t give you enough time to think about whats happening. When i had just started trading over 4 months ago, i used to look at the 5, 15 and 30 minute charts but i didn’t find them useful. Using the 1hr, 4 hour and daily charts is much better and gives you time to analyze and plan. I know your supposed to be the expert here or even the teacher but try it out and i am sure out of your 30 trades you will now profit 28 instead of 24

    Kind regards Kelvin
    Merry xmas
    Dr Julius Ssemakula

    • Kelvin says:

      Hi Dr Julius

      That was a good point. The higher time frame does indeed give us more time to think but will also give us lesser trading opportunity. However I must say that you have made a very good point here.

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!