Yes, I agree. A trading plan is much more than just checking the chart's indicators.Trendy wrote: Sat Oct 02, 2021 1:00 am There's more to it than that. You need to know how much to risk for example. You also need to know what to do if the price goes against you and what to do if the price goes in your favour. Cover every scenario with your trading plan
1. It's a full trading strategy including the best possible SL:TP risk reward ratio. Usually at least 1:3 will make your trades very profitable.
And entry/exit rules. Example: Fixed SL or trailing SL etc.
2. What time of day to trade for which pair. Volume and Volatility will change. For example EURUSD will be most active during London/New York overlap.
Here's a cool site for checking:
https://forex.timezoneconverter.com
3. And also the amount of your percentage balance = lot size you wish to put in a single trade.
Some traders use other money management strategies like Martingale etc for binary options. I personally think it's a bit risky.
4. Trade Style
You need to ask yourself what suits you:
Long Term or Scalping. And Trend based or Reversal based Trading. Or Binary options etc.
5. Risk:
And be very clear on:
- Risk %
- Maximum drawdown you are willing to take. Daily or Weekly.
Knowing fully well where everything goes keeps emotions out of it. And helps you trade well.
Without a plan, fear or greed take over