Engaging in this sort of preliminary forex planning process — rather than just jumping into taking positions in the forex market without a plan — helps differentiate the forex trading business person from the gambler who is just wildly speculating in the currency market without proper analysis or planning.
Having a solid forex trade plan can help you quickly take advantage of trading opportunities that arise, instead of missing potentially profitable trades while you are figuring out what to do.
Trading Forex is very different from every other job in the world because there are no rules. It will also contain guidelines about when to take losses and profits. Furthermore, having a trading plan helps objectify your trading activities and can assist you in trading with greater confidence — even when recovering from a substantial loss that can be emotionally devastating to some people.
Forex traders will either win big or lose big. What Should a Trading Plan Contain? I recommend the following: 1 spend at least 15mins each day reviewing your trades for the day 2 spend at least 1hr per week reviewing your performance and execution for the week 3 spend at least 1hr per month reviewing your overall stats What should you be reviewing?
A trader should aim to clearly articulate what their goals in trading are and lay out how they intend to achieve them by trading currencies.
We also recommend you to read about the basic forex trading plan and why you should have it. After you submit your details you will have access to the what some people call the Ultimate Forex Trading Journal!