Indicative Action Plan for the trader
From a practical point of view, to make the transaction in the foreign exchange market is simple. But since you need income, not just the process, right? What should the trader to receive income from their activities? Let's look at the whole cycle stages of the transaction the trader.
Briefly, the plan is as follows:
1. Monitoring the schedule chosen instrument.
2. Drawing up a trading plan.
3. Entering the market, opening positions.
4. Exit from the market closing.
5. Analysis of the acts committed and the result obtained.
Now in more detail.
Monitoring schedule. You turn on your computer, download the trading terminal and start the analysis of the market. - Your task is to trace the emergence of a situation conducive to entry into the market. For this purpose you can use the graphical analysis, to study the behavior of various indicators to monitor economic news - depending on your trading system.
Drawing up a trading plan.
And then came the moment when all the conditions of your trading system and you are ready to make a deal. Before you do this, you make a trading plan, which states:
1. The date and time of the plan;
2. Tool on which plan to open a transaction and the nature of transactions (buying or selling);
3. The reasons that think it is possible to open the deal;
4. Levels of limit orders and their rationale;
5. Risk management for the current situation. Here you specify the size of the transaction, the balance of the free margin, applied tactics, etc.
6. Reasons for the change of the trading plan. Here you specify the conditions under which your plan may be changed. For example: the market is not developing as you expected, breaks the trend line and in order to reduce losses close position without waiting for the stop-loss. Or a significant acceleration of the market will allow you to push the Take-profit to another level.
After writing the plan in your hand will actually direct instruction, which will save you from having to analyze the market, with an open transaction when the analysis is not objective because of human nature.
Opening of the transaction. After writing a trading plan is the opening of the transaction will not be for you as significant stress, as you would do it without a plan. You're just following his own instructions, open market transaction or a pending order with an indication of a stop order and take-profit. Began the most exciting stage of trading. You can follow the market or do other things, the main thing - to retreat a single step of his plan. After you have considered the reasons why the plan could change?
Closing position. The time has come when, in accordance with your trading plan, the deal is closed. It may be close to a foot or achievement TP. Or, to take effect provided that you change the position and closed manually. No matter how you did it, the time of the last stage of trading.
The analysis was done. The deal is closed, emotional stress has passed. Now is the time of analysis was done. And it must be done regardless of whether profitable or unprofitable was a deal. Do you have considered all of his trading plan? Maybe you opened any new circumstances that in the future should be considered. Or maybe you still have broken your plan? Then why? Did you bring it good luck or the reverse, you recorded a loss? These and many other questions, you will find answers for successful trading. In this you greatly help your trading plan that you can analyze not only immediately after the closing, but after a year or two, from the perspective of new knowledge.
Now you imagine what it consists of successful trading. Most of the time - trading, it is tedious work and not every one is able to withstand it. Only in the diligent work you will be rewarded, otherwise you will have to pay money. If you are not afraid of such challenges, begin to act now. Write down on a piece of paper that you still need to learn and make a plan of improvement. After all, you have to change yourself. Perhaps, reading books about success, you came across the idea of separation of days to a successful day and not successful. The day in which you have done something to get closer to your goal, call it a success. If you have not done anything to their purpose, then such day is not your success, as the day moved on your dream.
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