A complete guide for building your
Trading Plan
A complete guide for building your Trading Plan
The common problem that most forex traders
deal with when first starting out is the lack of a
proper trading plan.
Diving into forex trading without a clear plan is
like riding a bicycle without training wheels.
Few traders realize the importance of a well-
defined strategy and trading routine.
A trading plan provides you with clear steps and
actions to implement. Reduces improvisation
and stress since you will know exactly what to
do for every scenario.
We are happy to present you with this guide
for building your complete trading plan. We
have done our part, now is your turn to commit
to following this guide so you create your own
trading plan.
let’s start!
Trading Objectives
Why do I trade? What are my goals?
I’m currently trading: Full Time / Part Time / For Fun / For Curiosity/ Other
Why do I love trading?
What are my expectations from trading?
When does trading fulfill me?
When does trading distress me?
Name 5 strengths of you and how can they be used in trading?
1.
2.
3.
4.
5.
Name 5 weaknesses and how could you bypass them while trading:
1.
2.
3.
4.
5.
Key skills I still need to acquire:
Write down a statement for good trading days:
Write down a motivational statement for bad trading days:
Building Your Strategy
Strategy Name:
Strategy Objectives: (describe your strategy)
Strategy Context: (when does this strategy works better)
1. Filters:
Pairs
Time Frames
Indicators
Scripts/EA
2. Setup
What are you looking for in the charts
What variations you know for this setup
3. Trigger
When will you enter a trade (entry signal)
What is a high quality signal
What is a low quality signal
How will you enter the trade (type order)
❏ Market order Limit order ❏ Stop order
When you should not trade the setup
4. Stop
When will you exit the trade, where is your stop loss placed
5. Target
Where is your take profit? Why there?
What is a high quality TP level
6. Trade Management
How will you manage the trade if it goes in your favor
❏ ❏Scale in Scale out ❏ ❏Trailing Stop
Describe
How will you manage the trade if it goes against you
❏ ❏Scale in Scale out ❏Hedge
Describe
When will you stop trading?
Daily Target
Daily Loss
Time limit
Daily Checkup
Self Evaluation
Before taking a trade ask yourself the following:
Is my environment set up for the trading session?
Yes, all in place
No, let’s start with that
Do I feel mentally ready for this session?
Yes, let’s go!
No, so I have to be more cautious or consider not to trade
Do I feel emotionally ready for this session?
Yes, onward!
No, I need to be aware of that when trading or consider not to trade
I know what I want to achieve in this trading session?
Yes, describe
No, so why am I trading today?
Trade Checklist
Before taking a trade ask yourself the following:
Does this trade meet all my trading parameters?
Setup
Correct lot size
Correct stop loss
Correct take profit
Is this a:
high-quality signal
low-quality signal
Session Recap
After a trading session ask yourself
Despite the outcome, did I take the trades I needed to take according to my strategy?
Yes
No, why?
Was my lot size the correct one?
Yes
No
Did I get emotional during the trading session?
Yes
No
How do I feel now?
What do I need to do in order to feel good after the next trading session?
Documenting your progress in forex trading will help you avoid repeating costly
mistakes and improve your strategic ideas. So, if you want to find success in forex
trading, a winning trading plan is the best way to go about it. All traders must have their
plan, which should account for personal trading goals and styles.
In times of trouble and in times of prosperity, your trading plan will keep you afloat and
able to navigate the constantly changing dynamics of the market. So take your time,
test, tweak, and most importantly, believe in your trading plan.
High 5!
