Forex Trading Plan For Price Action Traders
It is very important you have a Forex trading plan for your price action trading strategies. Since the strategies are often very simple, a lot of traders thing they can remember everything and don’t need a plan. But when you have real money in the live markets, you are going to be thankful you have a plan to follow.
The first thing you need to understand is “why” you need to write down a plan. The trading plan for your price action systems is the glue that holds your trading together. When you don’t have a plan, it is easy to get distracted and let your emotions rule your trading. Throwing the rules away and trading on what you “think” is going to happen is the fastest way to lose money. So, even though price action trading strategies produce superb results, you need to have a plan you can follow before and after the trade is placed.
Trading Forex is not like other jobs you may have had in the past. Since most of you will be trading from home, you are without a boss. A better way to look at it is YOU are your own boss. It becomes too tempting to throw the rules away and trade based on whims or emotions. Therefore, think of your trading plan as a way to hold yourself accountable for the actions you take as a trader.
Your price action trade plan is more than just the rules to follow. The trade plan is much more in-depth than that. Think of your trading plan as a the way YOU are going to trade the individual trade setups as a whole. The way you trade must fit your personality, lifestyle and goals, and must be reflected in your plan. The basic trade rules you can get from a pro trader, but your personal trade plan must be personal and come from you.
Next, go to Learn Forex Live to find out some of the best price action Forex strategies. Then go to Forex Insider Pips to access free video training and unique trading tools designed to help you trade your price action trading plan like a true pro.
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